WHAT HAPPENS IF THE HOUSE I AM SELLING (OR BUYING) IS APPRAISED FOR LESS THAN THE SALE (PURCHASE) PRICE AND WHAT ARE MY ALTERNATIVES AT THAT POINT?
The options available if the house appraises for less than the sales/purchase price depend upon the terms of the purchase agreement. A purchase agreement can provide that the obligations of the buyer are contingent upon the house appraising for the sales/purchase price. In other cases, purchase agreements are made contingent upon the buyer obtaining a mortgage, and the availability of a mortgage will depend on the house appraising at a certain value (not necessarily the purchase price). In either of these cases, the buyer will generally be entitled to terminate the agreement and obtain the return of the earnest money. You can either ask the appraiser to look at additional information in an attempt to convince him or her to amend the appraisal or you can have a different appraiser look at the house. Remember also that, in such a case, a buyer and seller are always free to renegotiate the purchase agreement. If the purchase agreement does not have a contingency regarding financing or app
Related Questions
- WHAT HAPPENS IF THE HOUSE I AM SELLING (OR BUYING) IS APPRAISED FOR LESS THAN THE SALE (PURCHASE) PRICE AND WHAT ARE MY ALTERNATIVES AT THAT POINT?
- What happens if I default on the sale or fail to come up with the balance of the purchase price and/or costs?
- What happens if a seller finds a problem with the house after a sales contract has been signed?
