Wellington Florida Real Estate Q&A:
Question: What happens if the Wellington home I’m purchasing doesn’t appraise?
Answer: If the home you’re purchasing does not appraise you may have a few options, but the types of options will depend on your contract. If your contract is contingent on the home appraising and you are within your contingency period there are four different options to consider.
Option #1: You can ask the seller to reduce the purchase price to the appraised value.
Option #2: You can choose to pay the difference, so if the original purchase price was $400,000 and the appraised value is $390,000 you may have to bring up to an additional $10,000 to closing depending on the type of financing you’re obtaining.
Option #3: You can try compromising with the seller and “meet in the middle.” While the price you both agree to may not be exactly between the original purchase price and the appraised value it may be a price that both parties can agree to.
Option #4: Cancel the contract. If you’re within your contingency period you should be able to cancel the contract and get your entire escrow deposit back, but once again this will depend on how your contract was written.
While these are the most common options there is a 5th option, which is contesting the appraisal. I personally have never seen an appraiser increase their appraised value, they’ve always stood by their original value, but it could happen. There is also a possibility your lender will agree to ordering a second appraisal.
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