The appraisal came in low. Here is what actually happens next.
The bank does not lend on what you agreed to pay. It lends on the appraised value. When those two numbers disagree, you have a gap, and the deal stalls until somebody closes it.
You have real options. The seller lowers the price. You bring the difference in cash. You split it. You challenge the valuation. Or you walk away, if your appraisal contingency is still intact.
The one people forget is challenging it, and it works more often than you would think. Appraisers miss comparable sales. Pulling the three they overlooked, with photographs and a written case, gets values revised. Somebody has to do that work, and it should be your agent.
So do not panic on day one. Deals that look dead on Monday are often alive again by Thursday. Four days on the phone is the whole difference.
Valuation disputes exist everywhere.
The short version
- It lends on the appraised value.
- Not on what you agreed to pay.
- The seller lowers the price.
- You bring the difference in cash.
- You split it, or you challenge the value.
- Or you walk, if your contingency is intact.
- Somebody has to do that work. Make sure it is your agent.
Talk it through with Kini
Kini will run it with you on your real budget, anywhere in Orange, Los Angeles, Riverside or San Bernardino County. No charge and no pitch.
Book a consultation or call or text (323) 320-1725. See this month's numbers for your county.