What happens if a lenders appraiser appraises a home for much lower than negotiated sales price?
Recently a client asked me what would happen if the appraisal came in lower than the sales price.
Here are the five options if the appraisal is lower than the sale price:
1. Re-negotiate the purchase price with the seller. .
2. Walk away from the purchase.
3. Appeal the appraisal and/or get another appraisal
4. Seller carry back a second trust deed in the amount of the difference.
5. Put more money down to make up the difference.
As a listing agent I always meet the appraiser at the property and give the appraiser comparable closed sales to substantiate the sale price. Many appraisers are from out of area and welcome the information and help. I follow up with the appraiser approximately three days later to answer questions and verify that the appraisal did come in at the sales price.
Posted: July 20th, 2008 under Home Buyer Info, Home Seller Info, Real Estate Financing.
Tags: appraisal, comparable closed sales, listing agent, low appraisal, lower than sales price, purchase price, seller carry back
About the Author: Joyce Zangmeister
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