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If the appraisal is low the seller should come down?

By
Real Estate Agent with Coldwell Banker Professionals

If the appraisal is low the seller should come down? So if the appraisal is high the buyer should come up in price?

I recently had an appraisal come in low – way low- on a transaction where I represent the buyer. Way low translates into $74K low. The seller was asking $429,900. We negotiated a price of $404,000 and the appraisal came in at $330,000.

There are various reasons the first appraisal came in low but just trust me that the value was there and the buyers were getting a terrific deal. But the reasons for the low appraisal are not the subject of this post.

So my mom was at the bookstore during all this and was telling the lady there about the low appraisal and the book store lady immediately said “Of course the seller is coming down…”

But when someone brags that their new house appraised above the sale price nobody ever exclaims “So you increased your offer, right?”

Why is it assumed that a seller should give up thousands of dollars based on the opinion of one stranger?

What if the appraisal is low?

How the appraisal contingency can be used as a negotiating tool

Financing

How do the property taxes affect my purchasing power?

Who pays for the well and septic inspection?

Who is John Galt?

Buying a home in Southeast Michigan?

Jackie Hawley, Realtor
ReMax Encore, Clarkston MI
Cell: (248)736-6407

Jackie@JackieHawley.com

www.JHawleyAndAssociates.com

 

 

 

Posted by

Jackie Hawley, Realtor, ePro

ReMax Encore
Cell: (248)736-6406
Jackie@JackieHawley.com 
www.MiRelocation.com 

 

Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Buyer don't come up because the seller never hears about that appraisal. They're just told, "it hit value." Sellers are made aware of low appraisals because it afffects a buyer's financing if they're not paying cash.

Aug 16, 2012 05:19 AM
Jackie Hawley
Coldwell Banker Professionals - Oxford, MI
Southeast Michigan Real Estate

Hi Donna-

You're right; I was basically venting. It is becoming more common in this area to waive the appraisal contingency - sometimes completely and other times up to a certain dollar amount. Low inventory is creating multiple offers, but appraisals are still an issue if the buyer doesn't have the extra money to make up for a low appraisal.

Aug 17, 2012 01:53 AM