The Real Estate Browser Volume 7, Issue 14 | Page 9
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Volume 7 Number 14 – Say you saw it in The Real Estate Browser of Lynchburg — 9
for it. Since the appraised value is $190,000, we
agreed to pay the extra $10,000 out of our pocket.”
Not all buyers have the means or the desire to do
that, so the contract provides for a second alternative: reducing the purchase price TO the appraised
value. So the Smiths would say to the Perkins:
“Based on this appraisal, we now agreed to buy
your home, except now we will only pay $190,000.”
This is the more common road chosen, but it
then puts the ball in the seller’s court. They then
have the option of agreeing to the newly reduced
price… or they can choose to not accept the
appraised value and release the purchasers, ter-
The bottom line is this: when the appraised
value is determined to be lower than the purchase
price, the options start with the buyer, but they are
limited to the two above. Should the buyer choose
the second option, the decision is then left to the
seller as to whether the new price is acceptable to
them or not. The ability to walk away - or reduce
the purchase price BELOW the appraised value
- are not options available to the buyers, unless
separately written into the contract apart from the
appraisal contingency language.
Questions, comments, or have an idea for a future
article? Email me at [email protected].
minate the contract and start the process all over
again.
Your
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cell: 434.420.1238
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