The buyer has agreed to purchase my home for a specific amount. If my home is appraised lower than they agreed to pay, then are the sellers locked into the appraisal price or can they still sell at the price that the buyer and seller has agreed to? Are we allowed to keep firm with the original price?
2007-03-28 15:53:43 · 6 answers · asked by leclercnlakenona 1 in Business & Finance ➔ Renting & Real Estate
There are two issues. You can still demand the agreed price. However, the other interested party is the buyers bank, and they will NOT agree to finance a home for more then the appraised value, minus the down payment they are expecting. Your buyers will not be able to close the deal with a low appraisal. Ideally it is the opposite, appraisal much higher (usually the case) then sales price.
2007-03-28 16:00:39 · answer #1 · answered by Anonymous · 2⤊ 0⤋
The appraised value has nothing to do with the agreed upon sale price. The buyer may have a problem in getting the loan, but you can stay firm with your asking , or agreed , price. However,the low appraisal could negate the deal.
2007-03-28 23:17:19 · answer #2 · answered by Gone Golfing 2 · 0⤊ 0⤋
If the buyer is willing to come to the closing with the difference, then you will get your price. The lender is not going to give more than the appraised value. Most likely you will have to settle for the less amount. Most buyers are not going to bring money to the table just to purchase a home for less value than they are paying. That doesn't make much sense now does it?
Plus you will see that the contract says somewhere subject to appraisal. Meaning if the home does not appraise, they can back out.
RE Agent,
Remax
2007-03-28 23:32:13 · answer #3 · answered by frankie b 5 · 0⤊ 0⤋
The seller if dependend upon a bank for financing, it locked in with the appraiser. If the buyer is financing the money himself, then it's up to you two. The bank will not lend the buyer more than what the house is worth, to big a risk.
2007-03-28 23:09:52 · answer #4 · answered by JoshuaCaleb 1 · 0⤊ 0⤋
The bank will require a larger down payment depending on the the type of loan they are getting. Most likely the buyer will want to renegotiate the price. They are not obligated to purchase the price till the contract is signed.
2007-03-29 01:36:44 · answer #5 · answered by tianaramal 4 · 0⤊ 0⤋
no problem
2007-03-28 22:57:32 · answer #6 · answered by sampath k 1 · 0⤊ 0⤋