Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
5y
You mean if the appraisal comes in lower than the contract price? I have that conversation with every buyer and buyer's agent prior to accepting the contract. It's pretty common here at most price points. The lower prices have more financing so it's slightly less of an issue.
In most cases, the buyer needs to have a plan, otherwise they will lose out and the seller will go back on market. If it's a small difference and they are financing 90%-, the buyer can usually make it work. Sometimes the seller will adjust a little if there's room for them. That's where your negotiating skills come in to play -- do you want to save the deal? Find solutions that work for everyone.
Otherwise, it will go back on market. I had an appraisal just come in 15% below list and contract price. Buyer couldn't come out of pocket another $15k, so back on the market. Full price cash offer came in the next day. . .
Rental Property Investor · Surprise, AZ · Member since 2020 · 405 posts · 179 votes
5y
@Ofer Attia
If the buyer has an appraisal contingency in their offer it’s tough if they aren’t willing to pay the difference and threaten to back out if you don’t lower price.
Investor · Morrison, CO · Member since 2015 · 221 posts · 177 votes
5y
Are you having multiple offers? Do you have a competing situation? Did you already get an appraisal on the property? Sometimes the appraiser will adjust a bit on the appraisal if there are offers coming in above the price. The broker can provide the multiple offers to the appraiser to show that the market is higher than the price. Let your broker do a bit of convincing to the appraiser on your behalf. Or, maybe your doing a FSBO?
If you're receiving offers above the asking price and/or the appraisal is still low, the best way to negotiate with the buyers is to have them put in an appraisal gap. If they are unwilling to waive the appraisal contingency, then having them state that they will cover a gap up to an amount equal to $xx,xxx, then the appraisal can be lower than the purchase price and the buyers will still need to move forward. Otherwise, putting together an offer with such a high offer is a bit pointless because it will then just need to be adjusted later down to the appraisal amount or the deal possibly dies.
Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
5y
You mean if the appraisal comes in lower than the contract price? I have that conversation with every buyer and buyer's agent prior to accepting the contract. It's pretty common here at most price points. The lower prices have more financing so it's slightly less of an issue.
In most cases, the buyer needs to have a plan, otherwise they will lose out and the seller will go back on market. If it's a small difference and they are financing 90%-, the buyer can usually make it work. Sometimes the seller will adjust a little if there's room for them. That's where your negotiating skills come in to play -- do you want to save the deal? Find solutions that work for everyone.
Otherwise, it will go back on market. I had an appraisal just come in 15% below list and contract price. Buyer couldn't come out of pocket another $15k, so back on the market. Full price cash offer came in the next day. . .