When buying a home, the appraisal process is a crucial step in determining the fair market value of the property. If the appraisal comes in lower than the purchase price, it can create appraisal issues that need to be addressed before moving forward with the transaction. But what happens if the seller wonʼt fix the appraisal issues?
What happens if the seller wonʼt fix the appraisal issues?
If the seller refuses to fix the appraisal issues, the buyer has a few options. They can renegotiate the purchase price based on the lower appraisal value, bring additional funds to cover the appraisal shortfall, or walk away from the deal.
FAQs:
1. Can the buyer legally back out if the seller won’t fix the appraisal issues?
Yes, the buyer can legally back out of the deal if the seller won’t fix the appraisal issues, especially if the purchase agreement is contingent upon the property’s appraisal value.
2. Can the buyer force the seller to lower the price to match the appraisal value?
While the buyer can request the seller to lower the price to match the appraisal value, the seller is not obligated to agree to the request. It ultimately depends on the negotiations between the two parties.
3. Can the buyer pay the difference between the appraisal value and the purchase price out of pocket?
Yes, the buyer can choose to pay the difference between the appraisal value and the purchase price out of pocket if they are willing and able to do so. This is known as making up the appraisal shortfall.
4. Can the buyer request a second appraisal if the seller won’t fix the appraisal issues?
Yes, the buyer can request a second appraisal if they believe the first appraisal was inaccurate or if they suspect that the seller’s actions may have influenced the appraisal value. However, the seller is not obligated to accept the results of the second appraisal.
5. Can the buyer ask the seller to make repairs to increase the appraisal value?
The buyer can ask the seller to make repairs or improvements to the property in order to increase the appraisal value. However, the seller is not required to agree to these requests, especially if they believe the property is already priced fairly.
6. Can the buyer lose their earnest money if the seller won’t fix the appraisal issues?
If the buyer decides to walk away from the deal due to the seller’s refusal to fix the appraisal issues, they may be able to get their earnest money back, depending on the terms of the purchase agreement and any applicable contingencies.
7. Can the buyer take legal action against the seller for not fixing the appraisal issues?
The buyer typically cannot take legal action against the seller for not fixing the appraisal issues unless there was a breach of contract or fraud involved. It’s best to consult with a real estate attorney for advice in these situations.
8. Can the buyer ask the lender to reconsider the appraisal value?
The buyer can ask the lender to reconsider the appraisal value if they believe there were inaccuracies or errors in the appraisal report. However, the lender will ultimately rely on the expertise of the appraiser.
9. Can the buyer walk away from the deal if the seller won’t fix the appraisal issues?
Yes, the buyer can walk away from the deal if the seller refuses to fix the appraisal issues, especially if the purchase agreement is contingent upon the property’s appraisal value.
10. Can the buyer renegotiate other terms of the deal if the seller won’t fix the appraisal issues?
If the seller won’t fix the appraisal issues, the buyer can try to renegotiate other terms of the deal, such as closing costs, repairs, or inspection contingencies. However, the seller is not obligated to agree to these changes.
11. Can the buyer request a copy of the appraisal report from the seller?
The buyer can request a copy of the appraisal report from the seller, especially if they believe there were inaccuracies or discrepancies that need to be addressed. It’s important to review the appraisal report carefully to understand how the appraiser arrived at the value.
12. Can the buyer get a second opinion on the appraisal value?
Yes, the buyer can hire their own appraiser to get a second opinion on the appraisal value. However, the seller and lender may not accept the results of the second appraisal, and it can be costly for the buyer to pay for another appraisal.