Dec 21, 2012
Q: What should a buyer do if the appraisal comes back at a lower value than what he or she offered?
A: In this case, the most pressing issue is that the lender is now only willing to make a loan on the appraised amount rather than the agreed-to sale price. The bank guideline is to lend on the lesser of the appraisal or agreed-to sale price. In this event, the buyer may be in a situation where he is unable to add more to a down payment to make up the difference.
Even in the event the buyer could add more to the down payment, the buyer may now feel he or she is overpaying for the property and not many people want to do that.
Based on this, the buyer may try to renegotiate with the seller for a better price. However, most sellers will order their own appraisal of the property to counter this lower appraisal.
In most cases, unless the difference is too great, a willing buyer and seller can keep the deal together with further negotiation.
— Steve Anastos, William Raveis Real Estate, 203-461-0153, or email@example.com