What Happens if the Home I'm Purchasing Doesn't Appraise?
What happens if the home I am purchasing does not appraise, is a helpful article from the Real Estate industry in this pertinent Active Rain Article. To see what happens if the home purchased does not appraise, continue to the below portion.
Wellington Florida Real Estate Q&A:
Question: What happens if the Wellington home I'm purchasing doesn't appraise?
Answer: If the home you're purchasing does not appraise you may have a few options, but the types of options will depend on your contract. If your contract is contingent on the home appraising and you are within your contingency period there are four different options to consider.Option #1: You can ask the seller to reduce the purchase price to the appraised value.
Option #2: You can choose to pay the difference, so if the original purchase price was $400,000 and the appraised value is $390,000 you will have to bring an additional $10,000 to closing.
Option #3: You can try compromising with the seller and "meet in the middle." While the price you both agree to may not be exactly between the original purchase price and the appraised value it may be a price that both parties can agree to.
Option #4: Cancel the contract. If you're within your contingency period you should be able to cancel the contract and get your entire escrow deposit back, but once again this will depend on how your contract was written.While these are the most common options there is a 5th option, which is contesting the appraisal. I personally have never seen an appraiser increase their appraised value, they've always stood by their original value, but it could happen. There is also a possibility your lender will agree to ordering a second appraisal.
For more real estate questions and answers visit Wellington Florida Real Estate Q&A
If you are looking to buy or sell your Wellington home contact us today! You can reach us 7 days a week by calling 561-333-0446 or via e-mail @ Contact@WellingtonHomeTeam.com.
Originally posted at http://wellingtonhometeam.com/what-happens-if-the-home-im-purchasing-doesnt-appraise/
Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446
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