What if You get a high appraisal on your San Diego home?
George Lorimer
Thursday, February 1, 2024
Does the buyer have to pay more when the appraisal exceeds the purchase price? The video explains this in under one minute.
High appraisal: the price is locked into the agreed-upon price. So the answer is no. If you have an accepted offer at $500,000 and your appraisal is $515,000, you pay $500,000.
In a low appraisal, the buyer may renegotiate terms closer to or at the appraised price, but this is not guaranteed. Also, if you have an appraisal contingency, you can cancel escrow and get your deposit refunded if you're in your contingency period.*
For example, if you pay $600,000, and the appraisal is $585,000, you can ask the seller to reduce the price, split the difference, or pay a $15,000 downpayment difference. If you can't agree with the seller on a solution, you cancel and get your deposit refunded if you have the appraisal contingency and are in the contingency period.
Call/text me today to discuss my help buying or selling a home. I've done it 1000 times, LITERALLY!
Thanks, George Lorimer 619-846-1244
*Conditions apply. DRE# 01146839, ProWest Properties, George Lorimer
High appraisal: the price is locked into the agreed-upon price. So the answer is no. If you have an accepted offer at $500,000 and your appraisal is $515,000, you pay $500,000.
In a low appraisal, the buyer may renegotiate terms closer to or at the appraised price, but this is not guaranteed. Also, if you have an appraisal contingency, you can cancel escrow and get your deposit refunded if you're in your contingency period.*
For example, if you pay $600,000, and the appraisal is $585,000, you can ask the seller to reduce the price, split the difference, or pay a $15,000 downpayment difference. If you can't agree with the seller on a solution, you cancel and get your deposit refunded if you have the appraisal contingency and are in the contingency period.
Call/text me today to discuss my help buying or selling a home. I've done it 1000 times, LITERALLY!
Thanks, George Lorimer 619-846-1244
*Conditions apply. DRE# 01146839, ProWest Properties, George Lorimer
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