Appraisal versus agreement price

[Cody W.]

So I have a private sale contract on a SFH. For this example I will use the agreement price of $100K. I'm financing the property so my bank requires an appraisal. The seller and his wife will also require an appraisal as they are going through a divorce and that's what their attorneys have requested. I think the appraisal will come back 10% higher. The sellers are good with the $100K, but they think the attorneys will want appraised value. What advice would you give to own it at the agreed price? Obviously no commission fees would be involved so that should save them some. I've been advised to talk with my lender and have them talk to whoever does the appraisal, but I feel that that's not right.

[Jackie Jake]

following

[John Teachout]

I expect their attorneys want an appraisal to ensure the property is being sold at market price vs a vindictive sacrificial price or some kind of underhanded deal. I'm guessing the sale price wouldn't need to meet the appraised value, just be in the ballpark.

[Dustin Allen]

@Cody W.

Read the contract carefully. A typical contract specified that the home needs to at least appraise at the contract price or above. If they put something else in there because of the divorce, it may be different. The contract is what dictates how this will go down.