Buyer is buying a home through VA financing addendum, he made offer that was executed and ready to close but the appraiser came and property did not make value. However, the buyer did not have additional money to come out of pocket and the seller ref
1,409Buyer is purchasing the home through LV along but when the appraiser came out, property did not make purchase price value and Buyer refused to come out with additional money and refused to back down and Seller refused to barge with the price. What is the best solutions to this situation?
2 answer(s)
About 2 years ago
Nothing you can do. Unless you and the other agent wanna split your commission and try to make up the difference. Think outside the box. Maybe say if there was repairs, you can tell the sellers they did not have to make the repairs in exchange for lowering the price to meet the appraisal.
FYI on all my contracts and listings I disclose, sellers are not responsible for meeting lenders requirements, buyers must meet lender requirements and any price difference between appraisal and executed contract.
FYI on all my contracts and listings I disclose, sellers are not responsible for meeting lenders requirements, buyers must meet lender requirements and any price difference between appraisal and executed contract.
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DislikeAbout 2 years ago
Check the third party financing addendum for FHA/VA financing paragraph 4 for buyer protection to terminate. A new Apprisal form is available for this exact purpose to protect buyer in case value is not met. From experience the seller is not obligated to reduce the agreed sales price unless it’s in writing.
I don’t understand why the buyer don’t have enough funds to close. Buyer original financing was approved
on the original contract sales price. However; According to the third party addendum the VA loan would have to be approved to exceed appraisal value.
All the best.!
Broker-GRI
I don’t understand why the buyer don’t have enough funds to close. Buyer original financing was approved
on the original contract sales price. However; According to the third party addendum the VA loan would have to be approved to exceed appraisal value.
All the best.!
Broker-GRI
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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