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Rainmaker
1,390,113
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Anyone who buys the house will get an appraisal which will show the same information so trashing the contract and looking for a different buyer isn't going to solve the problem.

Aug 26, 2015 11:58 PM
Rainmaker
699,277
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

If the seller is getting more than it's worth, good for them.  If this deal doesn't go through then put in confidential remarks "nothing less than 20% down".

Aug 26, 2015 10:17 PM
Rainmaker
784,786
The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Education is important, even before the appraisal comes in.

Dec 07, 2018 11:16 AM
Ambassador
6,360,053
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Explain the process, the options, and the likely outcome.

Jun 11, 2018 10:46 AM
Rainmaker
760,883
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I try to get both the seller and buyer to work it out.  The problem in our California community, and I'm not sure if it's the same around the country, is that a FHA Appraisal sticks with the home for a certain length of time.

Aug 28, 2015 12:12 PM
Rainmaker
1,153,744
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

You should flick that switch on the moment a contract is acknowledged which has a mortgage contingency. Better yet when the decision is made to accept cash, financing or other at the signing of the listing agreement. At each step there is opportunity to soften the blow, an informed owner can take this in stride if you've done your part. 

Aug 27, 2015 04:47 AM
Rainmaker
400,356
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

It's best to discuss with the sellers upfront all potential appraisal issues as well as strategies so expectations are managed.  It doesn't become a panic moment, rather it is something we've discussed and will address. 

Aug 27, 2015 04:18 AM
Rainmaker
7,795,864
Roy Kelley
Retired - Gaithersburg, MD

Home sellers should be advised in advance what will need to be done if the appraisal comes in too low. 

Aug 26, 2015 11:41 PM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Kim Johnson Educate the seller ahead of time and it won't be a big surprise should the appraisal come in low. Education is key.

Aug 26, 2015 11:12 PM
Rainmaker
1,658,936
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

A lot of listening, explaining and hand holding.  

Aug 26, 2015 10:58 PM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Education of the facts

Aug 26, 2015 10:46 PM
Rainmaker
1,531,757
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

I've been here and it depends on the Asking price vs. Market Analysis I originally did and whether we're in multiple offers or not. You have left out the circumstances so here's my top 3 solutions:

If the seller went against my price advice, based on the market numbers & trends, I let the numbers do the talking which I rerun and now I have the support of an appraisal to reduce the asking price.

If we have multiple offers on a fair market price and they drove the price up in a bidding war, I put it on the buyer. (I've countered out the appraisal as a contingency at this point though. They need to prove they have cash to cover my projected difference in value; I've seen the appraisal issue coming in this scenario).

If it's not too far apart, it was priced well but at top dollar and time is of the essence, I discuss the wisdom of compromise and not losing time starting over and see if there's an equitable solution for both parties.

Aug 26, 2015 10:45 PM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Was the negotiation between the buyer and seller or the seller and bank?

It is the listing agents job to remove the bank and appraisal from the equation. 

90% of every house I sell is meaningfully above appraised value.

Perhaps the listing agent needs to see the light if the local real estate market is biased in favor of the seller. The buyer and the seller SEE the value.

PROTECT YOUR SELLER!

Aug 26, 2015 10:20 PM
Rainmaker
5,583,173
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that's out of your hands and what one appraiser sees, they'll all see, within a few dollars.... adjust or don't sell....

Aug 26, 2015 10:11 PM