Appraisal is less then price of Home being bought

[Ashish Mehta]

A home being sold for 330K was only appraised for 309K by the bank. Should the buyer ask the seller to appraised value by the bank? If buyer walks away does he lose his earnest money?

[Joe Villeneuve]

Originally posted by @Ashish Mehta:

thanks for replies. I should have mentioned this is not a investor home and it's being financed by buyer putting down 20% of sale price. 

 Then I would point out to the seller the low appraisal and get them to reduce the price...unless your buyer doesn't mind putting up the 20%, plus the $30k difference in cash for a house that they are starting out with underwater. 

>This is where I roll my eyes<I

Joe Villeneuve

REcapSystem
A2REIC