What can a seller do when the appraisal comes in lower than the selling price?

Asked by gigijen22, 77382 Wed Feb 29, 2012

We purchased the home from the builder in 2011, and it was a spec house with MANY upgrades. We paid 192K. Exact same house minus all the upgrades being built in another section of same neighborhood, and being listed for 213K with average sales price of 205K. We are selling because we need to be closer to my husband's job. We agreed with the buyer on a purchase price of 200K but it only appraised for 190K. Our realtor says that there is nothing we can do. Is that true?

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Buddy Willia…, Agent, Richmond, TX
Wed Feb 29, 2012
Good Evening - There are a couple of things you can do. Very difficult to compete against the Builders, they can just about price their homes any way they want to move them. Always a difficult sale when their is new construction available and someone is reselling too quickly. However, here we go 1) your agent could locate and supply the Mortgage Company's appraiser comparable sales in the area that are not over 6 months old 2) you can lower the Sales Price to $190,000 and move on or you can ask the buyer to negotiate the shortage with you 3) do nothing and wait for another buyer to come along negotiate the offer and hopefully get a better appraisal of the property. If your prospective buyer was doing an FHA loan, you are stuck with the appraised value. This happens a lot in this market certainly no fault of your Realtor. Good luck.
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Keith & Kins…, Agent, Verona, WI
Wed Feb 29, 2012
You can request the bank get a second opinion on the appraisal. Although, they don't necessarily have to comply. Do the buyers still want the house? If so, can they come up with an extra 10k? If your in position to carry a second mortgage for the buyers, maybe that's on option. Although, it's dependent on the buyers qualifications for the first mortgage too. Your other options would be lower the price to $190,000 or cancel the deal.

Good luck.
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