Jacksonville, FL - Its one fear every home seller has. They agree to do a whole bunch of repairs for the buyer, for the home, and then the appraisal comes in short of the agreed upon price. Now what to do? The sellers now invested money into the sale and the buyer wont pay the difference. Does the seller feel as if they need to lower the price now to complete the deal? What went wrong?
First off, they probably weren't working with a Realtor because if they had they wouldve been advised not to start any of the repairs until the buyer's loan was fully approved without contingencies including the appraisal. This is spelled out in paragraph 14 of the NEFAR purchase and sale agreement. Repairs can be costly and sometimes buyer specific.
Secondly, eventhough everyone is excited to get their stuff done to help the home move to closing, its important to take things in steps. Working with your Realtor, venting to them, expressing your anxiety to them, its all normal but you need to let it out. Another word for Realtor is sounding board.
Finally, in many cases the seller may make the decision that the costs are so minor when totaling up the repairs that they just simply want to do them and get them over with as the next buyer (should this deal not work out) might ask for the same items to be fixed. So for $500 or so dollars its just pointless to wait. I hear that too and as long as the sellers are making an informed decision than that's fine as well but please...
However, dont go adding a roof onto a home in the wishful thinking that the home will then appraise. It might not. Then what? Thoughts?