That is the case here in Brevard County, Florida where there seems to be multiple offers for every move in ready home that hits the market.
Brevard County, Florida average selling prices are rising steadily as indicated in this average sales price table.
So once all the inspections have been completed and the mortgage process is in full swing comes the appraisal.
So far I have been fortunate with my buyer's appraisals coming in above the contract price. But what happens if the appraisal is for less than the contract price? Assuming the buyer does not have the option of paying cash then there are several possible routes.
- Cancel. Most buyers really do not want to exercise this option.
- Negotiate a new price. This will depend on the seller's desire to close the current contract.
- Request a second appraisal. This is an added cost to the buyer ($400-$500 estimate) but if it saves the deal and money it may be a consideration.
- Bring cash to the closing table. If all other options fail the buyer can choose to add cash to make up the appraisal shortfall.