1,310,972
Any seller who would accept a contract that forces them to accept the appraised price as the contract price if lower than the original offer price is receiving poor advice from their agent.
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Chris Ann Cleland
Gainesville, VA
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Elyse Berman, PA
Boca Raton, FL
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Joan Cox
Denver, CO
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Carla Freund
Raleigh, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Greg Large
Grove City, OH
1,196,588
Have a lawyer wordsmith clauses ike that
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Nina Hollander, Broker
Charlotte, NC
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Joan Cox
Denver, CO
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Kathleen Daniels, Prob...
San Jose, CA
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Austin McKenzie
Lakeland, FL
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Greg Large
Grove City, OH
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John Juarez
Fremont, CA
1,502,848
As to what wording to use, make sure you're in a state where you're allowed to make those changes. Beyond that, I'd consult your Broker or real estate attorney. I'm not an attorney nor am I legally able to give advice on contract wording.
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Elyse Berman, PA
Boca Raton, FL
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Nina Hollander, Broker
Charlotte, NC
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Lyn Sims
Schaumburg, IL
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Wanda Kubat-Nerdin - W...
St. George, UT
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Kathleen Daniels, Prob...
San Jose, CA
3,125,265
If the appraisal comes in low, the seller can cancel the contract because there is no obligation in agreeing to the lower amount. In this market, the buyer will most likely need to come up in price.
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Lyn Sims
Schaumburg, IL
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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John Juarez
Fremont, CA
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Doug Dawes
Topsfield, MA
3,344,906
Get legal advice on this. Word crafting can be dangerous in the wrong hands. Make sure what you do passes the test of one with a license to practice law.
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Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
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Kathleen Daniels, Prob...
San Jose, CA
6,392,889
Our contracts are rather rigid in this area, editing this clause may require the brokers or buyers attny to provide the verbage they want.
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Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
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Austin McKenzie
Lakeland, FL
787,902
Austin McKenzie
A low appraisal does not excuse performance by the seller. Only the buyer has the option of cancelling, provided the purchase contract has an appraisal contingency clause.
The argument you're looking to make is already built in. With a low appraisal the buyer is within his rights to say, "lower the purchase price, or I'm exercising my 'out' under the appraisal contingency."
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Lyn Sims
Schaumburg, IL
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Wanda Kubat-Nerdin - W...
St. George, UT
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John Juarez
Fremont, CA
901,187
An attorney would have to do that for you. These days our appraisal contingencies state the buyer will pay the appraisal gap and won't walk away. Sellers here have so many offers that they wouldn't sign something saying they'll lower the price.
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Nina Hollander, Broker
Charlotte, NC
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Joan Cox
Denver, CO
5,104,806
Providing language like that would be considered practicing law here in NC. You can get an attorney to draft an appraisal gap addendum that suits both buyer and seller.
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Joan Cox
Denver, CO
5,868,372
In our market, if the Buyer doesn't agree to make up the difference, they won't win the bid.
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Nina Hollander, Broker
Charlotte, NC
2,781,013
The dynamic of the asking of taking three bids (appraisals) and seller accepting the lowest or the highest is standard wording for options to purchase in the future. One thing is made abundantly & unequivocally clear. There will be a sale subject to those bids/appraisals
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Wanda Kubat-Nerdin - W...
St. George, UT
1,035,056
763,783
"Seller agrees to adjust the sale price to the appraised value should the appraisal come in below price offered"
417,071
What type of appraisal is being used? Florida Real Estate Appraisal Board and lender the buyer uses may intervene and not accept such a condition on the contract. How can the seller know that the appraiser is certified, what if seller wants to contest the appraisal, what if seller has their own appraisal, what if the difference is ridiculously low because of error who is responsible ? My solution: have the seller provide the non refundable credit card for the appraisal cost with rush fee, thus the buyer can walk, get the appraiser into subject on day four and deliver on day seven. A week and no money exposure protects YOU and your buyer. Write the contract the seller pays the $1000 for SFR appraisal that lender chooses including rush fees. If the seller is elderly, somehow frail, disadvantaged could they come back and blame you for forcing a low ball sale? People can agree or contract to do lots of things. In 30 years I've not had any legal disputes and I don't want to pay for them. Low appraisals are a reality in this market. Get an attorney and your broker's advice I am not an attorney but if the buyer is using FHA VA USDA this won't fly in Florida.
Underlying message in your question is you believe the property won't appraise?
900,008
You need to check regarding wording with an attorney, but the seller is not likely to accept such a contingency. Might be worth a try, but seller would need to understand what they're signing.
1,844,171
That is how it is written in IL. Seller can walk, re-do the price, split within so many days after short appraisal.
Be careful about writing your own contingencies because your not an attorney.