What happens if appraisal comes in below the appraisal gap coverage clause?

I am under contract to buy a house and offered to cover up to $10k if the appraisal comes in below purchase price. Our contract also makes the earnest money non-refundable after the due diligence deadline, which is coming up. I’m getting worried that we will not have the appraisal results prior to our earnest money becoming non-refundable. My question is: if the appraisal comes in well below our offer (for example, $25k lower), does the seller have to agree to accept our $10k appraisal gap and proceed with the sale? Or could the seller back out if we don’t agree to cover the rest of the appraisal gap?

submitted by /u/naneeja
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I am under contract to buy a house and offered to cover up to $10k if the appraisal comes in below purchase price. Our contract also makes the earnest money non-refundable after the due diligence deadline, which is coming up. I’m getting worried that we will not have the appraisal results prior to our earnest money becoming non-refundable. My question is: if the appraisal comes in well below our offer (for example, $25k lower), does the seller have to agree to accept our $10k appraisal gap and proceed with the sale? Or could the seller back out if we don’t agree to cover the rest of the appraisal gap? submitted by /u/naneeja [link] [comments]

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