Lenders will provide financing on the basis of the sale price or the appraised value — whichever is less. This means if the appraised value is less than the sale price, the seller may have to lower the price, the buyer may have to offer more cash, or both parties may need to make some concessions.
August 31st, 2008 By Peter G. Miller
- Can I discount the sale price to create a down payment?
- Sale Prices Versus Appraised Values
- What’s A Cash-Back Transaction?
- What To Do In A Falling Real Estate Market
- Must A Home Seller Respond To Our Offer?
- How could our full-price offer be rejected?