When you are using financing to buy a home (which most people are) the bank has to make sure the home appraises for at least what is under contract for. What happens in a market like Charleston, where prices are constantly rising, is people are putting their home for sale at the absolute top dollar value they think they can get and a lot of times they end up finding a buyer. You get the house under contract at a set price, it gets appraised, and the appraisal falls $10,000 short of what it’s currently under contract for. What happens now?
There are generally three options in this scenario: the buyer can pay out of pocket the $10,000, the seller can lower the price by $10,000, or you terminate the deal because you can’t agree with one another. If you are looking to educate yourself more on the world of real estate, or just want an agent who is already educated, reach out to me personally.
Written by: Robert Judy