2,684,009
Assuming that the Appraisal was ordered by the Buyer's Lender - show it to the Seller and the Listing Agent. The LA may want to challenge the appraisal. If not, then politely offer a "Take It or Leave It" to the Seller.
UNLESS it's a really hot market or super-desirable property, then maybe the Buyer wants to pony up the difference in cash.
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Troy Erickson AZ Realt...
Chandler, AZ
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Desmond Neoh
North Bethesda, MD
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Dan & Laurie Pittsenba...
Bellingham, WA
613,494
What is there to negotiate? IF you are truly representing the buyer, than it is your job to not let the buyer overpay.
The appraised price is the market value...who cares what the listing agent thinks? Contrary to popular belief, short appraisals are rarely wrong.
If the listing agent wants to challange the short appraisal, let them. It is not your job however to raise the price if you are really a buyers agent. Your job is to get the lowest price and most favorable terms for the buyer which means getting the seller to lower the purchase price to appraised value.
Eve
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Troy Erickson AZ Realt...
Chandler, AZ
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Desmond Neoh
North Bethesda, MD
921,504
"My buyer does not want to overpay. We need to buy for the apprised value not the negotiated price."
Since I usually represent the seller, and I will not allow the seller to be vitimized by the lender the buyer chooses, The buyer will be given the option to reconsider, find the gap money, otherwise this house is not for them. Usually this is resolved BEFORE the appraisal is requested.
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Desmond Neoh
North Bethesda, MD
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Dan & Laurie Pittsenba...
Bellingham, WA
979,496
At that point, the who deal is up for negotiation. Seller doesn't want to sell at appraised price, and buyer doesn't want to overpay. Someone, or both parties, are going to have to give, or you may no longer have a deal.
It may have a lot to do with how hot the market is, or whether it is a buyers market.
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Bill Dean
Fenton, MO
4,319,419
There are few options - buyers pay the difference, seller brings down the price or split the difference by mutual agreement.
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Melissa Jackson REALTOR
Azle, TX
3,988,007
I try to get the best deal for my buyer and get the seller to move all the way down to the appraised value. Buyers in my area rarely pay over appraised prices and will walk away.
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Bill Dean
Fenton, MO
469,510
As long as the appraisal is "the" appraisal done on behalf of the buyer's lender, then simply send over a copy of the appraisal and let the listing agent know that the band will only loan X amount of dollars on the place. That may or may not do the trick depending on lots of factors in the situation ie - were there competing buyers for the place, is there a signed around back up offer, can the buyer cover the spread?, can the seller afford the lower price without becoming a short sale?? etc
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Desmond Neoh
North Bethesda, MD
1,239,801
offer at the appraisal price.
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Dan & Laurie Pittsenba...
Bellingham, WA
1,231,853
5,583,278
there are situations when it can be negotiated and other situations when it cannot.... too many scenarios for this question....
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Dan & Laurie Pittsenba...
Bellingham, WA
2,071,025
1,598,452
6,392,899
661,178
Came here looking for answers since my seller just got hit with this , There are some good answers here but How does a seller make the challenge?
719,838
321,564
5,868,372
Did just have an appraisal come in low on my buyer's purchase. There was no verbiage in the contract about bringing the difference to closing. Agent asked to "split the difference", but had to remind them, the buyer did not have to. We did an amend lowering the price.
516,337
Even though I was the buyer's agent, I would still pull up comparable properties to see if there were any additional comps. If it truly is lower, then the buyer will have to decide if they want to move forward and pay additional, or see if the seller will come down to the appraised value. Sometimes appraisers may miss some comps. I try to work it out between the parties and exhaust every opportunity to keep the sale moving forward, if that is what my buyer wants to do. If you are the buyer's agent, the appraiser will accept the additional comparables from you. It requires a little extra time, but worth it in the end if everything works out.
4,571,731
It depends. How is this issue addressed in the contract? Is there an appraisal contingency?
2,224,473
You have to let the seller know and see how our buyer might feel about bringing funds to the table. There are a number of ways to work this.
4,935,556
Do not let the buyer overpay, that is how people get in trouble if the market turns
5,005,333
Start out first asking the seller to reduce the price. Depending on what market you are in (sellers or buyers) expect tp negotiate!
4,434,127
5,048,718
Depends on the market and the buyer. Buyer would likely want to not pay more than appraisal and if seller will not drop the price we're gone. I did have a buyer who was willing to pony up some cash but that's only happened once and buyer and seller split the difference.
4,272,548
4,800,082
I tell the sellers that we are not interested in paying more than the property is worth.
474,392
I would tell the sellers that the bank will not make a loan for more that the appraised price for the buyers.
1,157,785
The negotiating tactics depends on a number of specific factors in each situation.
1,502,858
This happens often enough. As the seller agent I request a copy of the appraisal. I won't negotiate without it. I look at the comps used. I have challenged them before.
As the buyer's agent, I've used them to get price reductions/credits in escrow. No buyer wants to over pay and no bank wants to lend (it seems like at all these days). Annette Lawrence , Palm Harbor, FL 727-420-4041 has the best wording on what to say. The sellers can negotiate or say "take it or leave it." This is where you earn you commission.
2,781,013
634,482
Depends on the situation. when representing a buyer we often include a clause in the contract "or not more than X% above appraisal". Our lenders have no control over who does the appraisal. If I know it is low I challenge it. Otherwise let the buyer decide if they want to add cash or not. Seller decides what they will accept.
1,466,207
Lower the price to the appraised value or walk. I have heard of buyers splitting the difference, if they really want the property.
7,835,266
400,356
Work with the listing agent to challenge the appraisal and get reconsideration. Present compelling, factual information that at minimum, supports the contract price.
It's difficult, because you're basically telling the appraiser they're wrong. People don't like to hear they are wrong, but challenging an appraisal can sometimes be successful.
Most often, the buyer and seller move toward the middle, with each party agreeing to make a concession.
I've never suggested that a seller simply reduce their price to the appraised price and I can't see that I would unless under extraordinary circumstances where the seller is getting value elsewhere.
292,685
Is the accepted offer within reason ? Can buyer pay difference? Will seller reduce price ? Will seller pay closing costs ? Is buyer and seller prepared to walk away from the deal ? Surely there is a way to compromise but remember the lender is not one who will compromise.
1,712,676