In this market we are actually starting to see some homes not appraising for purchase price, which might sound strange since the prices have dropped considerably in the last 2 years. If for some reason the appraisal amount does not come back at purchase price or above there are a couple of options:

• The buyer may re-negotiate with the seller asking for a reduction in the sales price to match the appraised value.

• The buyer may come up with the extra cash to subsidize the amount from which the appraisal price is vs. the sales price. (I wouldn’t recommend that in this market)

• The buyer may cancel the contract and have their earnest money returned to them.

Posted on Thursday, February 26th, 2009 at 12:20 pm and is filed under Questions and Answers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.