The Real Estate Browser Volume 7, Issue 14 | Page 9

www.LynchburgRealEstateBrowser.com 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 Home Here! If you enjoy reading my article in The Browser, check out my Facebook page for more articles & videos, fun photos and my weekly FUN FRIDAY contest! cell: 434.420.1238 email: [email protected] web: www.DanVollmer.com Click on the Listing for photo tours and additional information for each property.