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*DISCLOSURE* This is all my opinion and should not be construed as legal advice. This is meant to be informative, but please do your due diligence and if you need assistance, contact the appropriate professionals. 


Appraisal different than Contract Price:

I often get the question, what happens if the appraisal comes in higher or lower than the contract price? Let’s tackle the easy one first.



  • If it comes in higher, good for you the buyer!! 
  • Can the seller try to raise the contract price if it is higher? 
    • Customarily the buyer pays for the appraisal (but it is negotiable) so they ‘own’ that information.
    • You DO NOT have to share the outcome with the other party UNLESS you the buyer are looking to change the terms of the contract and you are using the appraisal as the reason.
  • Whether you have an Agent or you are representing yourself, if the selling party asks, just say something along the lines of “Appraisal is at value and we are free to move forward”


Okay, now, what if the appraisal is lower? 
There are 4 options:



  • Buyer pays difference in cash.
  • Seller lowers sales price to match appraised value.
  • Buyer and seller meet in the middle somewhere.
  • Or if no agreement is made, the contract is cancelled, and parties go their separate ways.


**Also know that if there are any concessions in the contract from seller to buyer, they also can be renegotiated at this point**


This is what happens in a nutshell. If you have further questions or “what-if” scenarios, shoot me a message and I’ll try to help how I can!


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