Appraisal versus Sale Price

[Anonymous]

If appraisal and sale price do not match up, what options are available aside from seller decreasing the price and/or buyer ponying up the cash to make up the delta (about 15%)? Will bank loans be still be disapproved despite a no appraisal contingency?

[Anonymous]

If you are putting more than 20% down it shouldn't be a problem...

[Anonymous]

Anonymous wrote:If appraisal and sale price do not match up, what options are available aside from seller decreasing the price and/or buyer ponying up the cash to make up the delta (about 15%)? Will bank loans be still be disapproved despite a no appraisal contingency?

Third option is the deal blows up.

You *might* seek another appraisal. Depends on the bank and whether it would accept one.

No, bank won't lend you the money if it doesn't appraise. Lack of appraisal contingency probably would be superseded by the financing contingency, unless you were stupid enough to waive that too. Only time a no appraisal contingency matters is if it's an all-cash deal. Anytime money is borrowed, however, the appraisal matters and is material to dispursement (or not) of the funds.

[Anonymous]

"Third option is the deal blows up."

Not true - our buyers got their lender to give them more on their loan to make up the difference, which essentially resulted in their down payment being something like 9% rather than 10%. It took time and closing was delayed for days, but it worked out.