The buyer’s lender will contract with the appraiser to perform the appraisal.
Every so often, you may be asked to support your offer price. You should have all of your comparables ready to send via email, or give to the appraiser.
Should the appraisal come in below the negotiated offer price, the options are:
- The client may terminate the contract and ask to have the earnest money returned.
- The seller may adjust the purchase price which would need to be done using an Amend/Extend.
- A comprise between buyer and seller may be reached whereas each side contributes to the overage in price, the seller lowing the price and the buyer putting more money into the transaction.
IF YOUR CLIENT WISHES TO TERMINATE THE CONTRACT DUE TO APPRAISAL ISSUES, YOU MUST DO SO BEFORE THE APPRAISAL DEADLINE, SENDING WRITTEN NOTICE USING THE TERMINATION FORM. AT THE SAME TIME, SEND AN EARNEST MONEY RELEASE FORM.