What happens when appraisal is lower?

[Alvaro Rodriguez]

I am in the process of closing on a house, closing date is 2 weeks from now. However, the appraisal the lender ordered came back $17k lower than the asking price. At this point what is the most logic next step? I don’t want to pay $17k more than the appraisal. This is not a house, is this still a point where I can negotiate price with the seller party? Do I request the seller to lower the price by $17k? Or that they lay closing cost?

I was thinking if they pay for closing cost I would still get stuck with an overpriced house.

Any feedback on what to do when they appraisal is significant lower than agreed price?

Thank for you for all the feedback

[Dan LaFontaine]

Congrats @Alvaro Rodriguez.  Getting the price down is certainly always the preference as you end up with a better deal.  Sometime a slightly lower appraisal is not bad as it gives you yet another lever, an indisputable and objective one, to pull at the last minute when you otherwise would have already hit the seller's bottom.  That being said, never be afraid to dispute an appraisal. Far too many appraisers rush things or play it overly safe to protect themselves and the lender, which is understandable.  As long as you've done your homework and  are armed with additional highly relevant data for them to consider (and to manage their risk with), there's usually a good chance you'll squeeze a little more out.