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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

If there's a financing contingency it will be based on appraising. Buyer should have an out if property does not appraise and seller won't sell at the appraised price.

By the same token, if the value is there in the buyer's mind, they can pay more than appraised value so long as they are willing to bring the difference to closing between what the bank will finance and the sale price.

Jul 17, 2016 09:12 PM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I don't think they need to put down more money with that % down. It's normally only with the low-down options under 20% I bet.

It would be rare in our market for there to be a mention of an appraisal with that much down. In FHA obviously, there is the rider that states it.

Jul 17, 2016 10:57 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Nina Hollander nailed this one...

Jul 17, 2016 09:24 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

If an appraisal is below expected value you can contest it. I have done so 3 times since 2015, 1/3 were overturned, 2 remained and killed the deals. You have to have blatant errors caught or better comps that closed post appraisal or it feels like its next to impossible to get these guys to admit they were wrong.

Jul 17, 2016 09:20 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I have nothing to add that has not already been said. It is tied to financing. If FHA and already over the FHA limit for the area, the buyer has already covered the difference with bringing more cash to the table. That is not uncommon in my area.

Jul 18, 2016 01:04 AM
Anthony Acosta -
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Just had this happened, the seller reduced the price down to appraise value and we closed.

Jul 17, 2016 11:29 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I'm definitely with Nina Hollander on this one.

Jul 17, 2016 09:37 PM
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

I recently had this happened and contested it.... The buyer decided the place was well worth what he was paying and we moved forward and closed.

Jul 17, 2016 09:27 PM
Roy Kelley
Retired - Gaithersburg, MD

The buyer should have an out if there was an appraisal contingency.

Jul 17, 2016 09:16 PM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Thank you Nina Hollander 

Jul 18, 2016 01:24 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Since we have so many VA contracts this will often cause a sale to fall through unless the seller lowers price to appraisal.

Jul 18, 2016 01:14 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

The closing will happen if the buyer has more money to cover the difference or seller would agree to reduce the price, have to start again with someone else.

Jul 18, 2016 07:09 AM
Mayra Espinosa Realtor San Mateo Pacifica Homes
Mayra Espinosa Broker- Realtor | Call 650-996-8961 - Pacifica, CA
San Mateo County Real Estate | Buy | Sell | Invest

It's very simple. Assuming the buyer really like the property and want to move forward with the sale.


  • The real estate agent should re-negotiate with the sellers or sellers' agent
  • Bring the difference between the offer price and the appraisal price
  • Or Walk away assuming there is a Loan appraisal contingency in the purchase contract. 
Jul 18, 2016 05:17 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

With that much money down, the bank might make the loan in spite of the appraisal (although not over the appraised value).

Jul 18, 2016 05:14 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

It depends.

On the contract.

On the buyer.

On the seller.

On the property.

It's actually not uncommon in my market and that's why many buyers remove the appraisal and loan contingency in order to be competitive with multiple offers.   Of course, buyers having the funds necessary to make up for any shortfall is critical in the decision making process for a seller.   

Jul 18, 2016 04:47 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

One can contest the appraisal, failing in that the additional down payment may do the trick if the lender is OK with it.

Jul 18, 2016 03:21 AM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Appraisal comes in low?  Yeah, that happens.  Here's the options in my experience:

  1. Buyer makes up the difference (it happens).  Smart buyers put that into their offer!
  2. Seller challenges the appraisal and orders a second one.
  3. Seller agrees to reduce the price to the appraised value.
  4. Buyer walks.

I've seen all four options.

Jul 18, 2016 03:07 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Happened to my husband and me when we bought our house;  we were in a multiple offer situation and HAD to have the house, so we just paid the difference in cash.  

If there is an appraisal contingency, of course, the buyers have the option to void the contract if the house doesn't appraise for offer price and they don't wish to make up the difference.  Or, both parties can work out a compromise.  The bank is only going to lend on the appraised price;  it's up to the parties to make it work - or not. 

Jul 18, 2016 01:26 AM
Toronto, ON

It depends on the particular situation.

Jul 18, 2016 12:35 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In our area that happens routinely. All offers submitted have no appraisal contingiency to have a clean offer.

Jul 18, 2016 12:26 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Even if a cash sale, we still offer an appraisal addendum to our buyer clients to protect them.

Jul 18, 2016 12:26 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Depends, does the buyer really want it , go thru with the deal.

Jul 17, 2016 11:54 PM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Well, here are the options in my opinion

  1. Seller lowers price to appraisal
  2. Buyer makes up the difference at closing
  3. Buyer or seller walk from the deal
Jul 17, 2016 11:43 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

If I am the buyer and it does not appraise, the seller adjusts the price or I walk! Have represented a buyer who got an appraisal way under the purchase price and bought it anyway because his wife wanted it! Go figure!

Jul 17, 2016 11:43 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

You could protest it, or renogiate the price with seller. Buyer could bring money to the table or, assuming there is an appraisal contingency, back out of the deal

Jul 17, 2016 11:27 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Options on both sides in either case.  

Jul 17, 2016 11:27 PM
Pat Mistretta
PalmerHouse Properties & Associates - Atlanta, GA
Atlanta Lofts and City Living

I always have an appraisal contingency in my contracts for my buyers.  I had one incident where the appraisal was unrealistically low and although it was disputed and "reviewed," the appraiser did not change his value.  My buyers opted to go with another lender, who did an appraised value at the correct fair market value which was consistent with the prior 3 sales in the building.  Regardless of the cash down, or even all cash offer, I always put in an appraisal contingency.

Jul 17, 2016 11:20 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Depends a lot on who wants the deal to work more, buyer or seller.  Buyer may have to finance less, seller may have to settle for less, hopefully none of the agents get nervous and decide to chip in for someone else's home.

Jul 17, 2016 11:02 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

ditto to what Nina said....

Jul 17, 2016 10:52 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Peter Mohylsky The appraisal only has to cover the loan amount. Now it's up to the buyer and seller to negotiate lowering the price, the buyer accepting the contract price and appraisal as written or splitting the difference.

Jul 17, 2016 10:49 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

There will be lots to be said that's for sure....

Jul 17, 2016 10:49 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

This creates a conflict when the Seller's Agent wants to get a new appraisal . They will want your Buyer to IGNORE the Lower Appraisal in favor of the new Higher one ! Is that really fair to the Buyer ?

Jul 17, 2016 10:47 PM
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

depends on how the contract was written - is there a contigency?

Jul 17, 2016 10:23 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

You have to look at the comps the appraiser used and see if the appraisal is valid or if they made another mistake. If they did make a mistake, you can appeal to the loan officer to get a manager involved and provide comps to send to the appraiser to review. 

Jul 17, 2016 10:15 PM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Lender wants to be able to get their money back in case of default. If buyers pays $390,000.00 for a $300,000.00 valued house, i cans ee where the lender would want their risk to stay under $300, so buyer has $90,000.00 to kick in, and feels the house is worth that to him, they should be able to make deal work.

Jul 17, 2016 09:46 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It depends on the purchase contract.

Jul 17, 2016 09:24 PM