If the Property Appraisal is Lower or Higher than the Purchase Price
By Regina P. Brown, M.B.A., Broker, Instructor
(MBA Broker Consultants)
The appraisal value often matches the exact selling price that the buyer and seller have agreed to. That is because an appraisal estimates the fair market value. When a buyer and a seller in an open market agree to a purchase price, that is a strong indication of the actual market value. Most appraisers will recognize the purchase price as a valuation of the fair market price.So you may be asking: what happens if the appraisal comes in lower than our purchase price? That’s a great question. If the property’s appraisal value is less than the purchase price, you have agreed to, your mortgage lender may not agree to the purchase. Therefore, you will likely request that the seller lower his purchase price to the appraisal price. In some instances, the buyer can contribute the differe...
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