Can seller back out if appraisal is high

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My house appraisal came in too low. What now? [VIDEO]

can seller back out if appraisal is high

What to do if your seller wants to back out of the deal?

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The home appraisal process can be nerve-wracking for many sellers. You probably already listed your home, and even received an offer, and now someone is coming in to tell you what the house is worth? Someone who can quickly state a price that sinks your sale? It only makes sense to be concerned. Fortunately, most appraisals do not ruin a sale. However, there are some common myths that sellers believe that need to be dispelled. The more you know what to expect, the less likely you are to be unpleasantly surprised.

See recommendations below. One option is to get a second opinion. You may end up paying for two appraisals and still no refinance. Read further for other ideas. Keep in mind that if you cancel the refinance, you will most likely have to pay the appraisal fee. Likewise, ordering a new appraisal is no guarantee of a higher value, and you are on the hook for two appraisal bills.

Whenever you finance a home purchase with a mortgage, the bank is going to insist on an appraisal. An appraisal establishes the fair market value of the home, which is how the lender ensures that home is worth the price you're paying for it. What happens, though, if the appraisal comes in below the agreed-upon sales price? A low appraisal may seem like a disaster, but the goods news is, you can usually negotiate with the seller and salvage your deal. You can still negotiate after an appraisal, but what happens next depends on the appraisal value and the conditions of the contract.

Buying a home can be an expensive and risky proposition. You may not be familiar with the market in the area, or home values there can be hit or miss.
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Are you worried about receiving a low appraisal, or has your appraisal already been completed at a value less than you expected? In seller's markets, multiple offer situations often drive up the purchase price higher than any comparable sales in the area; which is why in those instances many sellers worry the appraisals will come in low. In buyer's markets, when prices are soft or falling, sellers are also concerned that the appraisal will be a low appraisal. Low appraisals can happen in any marketplace, though: hot, cold or neutral. Here are a few:. One factor that does not come into play is whether the lender wants to make the loan.


How An Appraisal Contingency Can Protect You


What if the seller decides to back out of the deal after the appraisal? If a home is appraised for lower than the sale price, the lender will give the buyer less money. A home that appraises for higher than the purchase price is a benefit to buyers as it means instant equity.
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