When the Appraisal Comes in Lower than Purchase Price

During these tough times we will likely encounter a situation where the appraised value does not support the sales price.

In some cases the seller will accept the appraised value and renegotiate. However in the case of a seller who won’t but really do want to sell their home, what should you do?

Scenario: Sellers property is listed too high. Completed appraisal supports 15,000 less than the agreed purchase price.

Assuming this is an FHA loan with the seller paying 3% toward closing costs. Seller doesn’t want to accept less than the purchase price and threatens to put it back on the market and return the earnest money.

Fact: If another buyer comes along the same thing will happen. The value is what it is and the seller will be right back where they started. Only an all cash buyer or a buyer with a large down payment can close this sale. In a buyers market it is not likely that any buyer would want to pay more for a property than what it is wort. A lot of buyers in this market will be FHA approved. Assuming the appraiser “pushed” the value an underwriter would disagree with the value and the seller would end up with the same result. If the market is declining time lost is money lost.

I hope that somewhere this might help someone get that tough deal closed.

About The Author

2 thoughts on “When the Appraisal Comes in Lower than Purchase Price”

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

ABOUT ME

Sharon Paxson is a full-time REALTOR® with Compass and has been specializing in residential real estate throughout the Newport Beach area since 2005 assisting Buyer’s, Seller’s, Landlords and Tenants with their real estate needs.

If you are thinking about buying, selling or renting your home, condo or other Real Estate in the following areas including Newport Beach, Newport Coast, Corona del Mar, Huntington Beach there are thousands of Realtors to choose from. However, it doesn't cost you any more to work with a top Newport Beach CA Realtor. We welcome the opportunity to show you how we get outstanding real estate results with specific and targeted marketing. If you are looking for a top real estate agent who will make a difference you have come to the right place. Use this real estate website to learn about communities and homes for sale.

REAL ESTATE BROKERAGE SERVICES

  • Newport Beach Homes for Sale/Sharon Paxson®
  • Newport Beach area buyers, sellers, renters
  • 520 Newport Center Drive Suite 330
    Newport BeachCA 92660
  • 949-280-0681 | DRE 01501912

DISCLAIMER

DISCLAIMER: All information, photographs & content contained on this site is the property of Sharon Paxson. You must obtain written permission from Sharon Paxson if you would like to use any of this content contained herein. Opinions expressed are those of Sharon Paxson and may not necessarily be opinions of past and present brokers. Articles may be time and date sensitive. All statistical information utilized to create market reports has been obtained from the CRMLS. Information Deemed Reliable but not Guaranteed.

Copyright © 2019 Newport Beach Real Estate

Scroll to Top