Most offers today in our market are subject to an appraisal. In the past these contingencies were rare, but today they are one of the most common contingencies second to financing. So what does this mean to you as a seller? Once you have negotiated the offer price with the buyer the contract must survive the appraisal process. I might note here that most do. However in the event that the appraised value is less than the offer price, a lender and or the buyer may ask the seller to reduce the contract price to the appraised value. This scenario does happen and causes great concern for a seller. The banks are concerned about insufficient value as is the buyer, so the pressure rests on the seller to concede to the new appraised price. Without the sellers consent the deal will not survive. It is so important in our market that your home is priced correctly to begin with. A legitimate list price generally escapes appraisal problems.
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