During a home sale, the buyer will most likely have an appraisal done on the house. If the house doesn’t appraise for at least the purchase price, it can be an issue because the buyer’s lender will not lend more money than a home is worth. Don’t worry! There are a few possible scenarios that can occur should an appraisal come in low.
1. The seller can reduce the price to the appraised value.
2. The buyer could put more money down to make up for the discrepancy. For example, if the appraisal came in $10,000 under the sales price, the buyer would put down an additional $10,000.
3. Both the buyer and seller could each contribute towards the appraisal gap. For example, if the appraisal came in $10,000 under the sales price, the buyer could down an additional $5000 and the seller could reduce the price by $5000 which in total would make up for the $10,000 gap.
4. The last scenario is the buyer could cancel the contract and their earnest money would be returned.
Questions about the home buying to selling process? Message me! And don’t forget to save this post for future reference.
Dawn Forkenbrock, Arizona Realtor
Real Broker 🌵
🌐 theforkenbrockgroup.com
📱 Call/text: 480.220.0215
📨 dawn@dawnsellsazhomes.com
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