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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     Assuming that the Appraisal was ordered by the Buyer's Lender - show it to the Seller and the Listing Agent.  The LA may want to challenge the appraisal.  If not, then politely offer a "Take It or Leave It" to the Seller. 

      UNLESS it's a really hot market or super-desirable property, then maybe the Buyer wants to pony up the difference in cash.

Feb 18, 2016 11:53 PM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

What is there to negotiate?  IF you are truly representing the buyer, than it is your job to not let the buyer overpay.

The appraised price is the market value...who cares what the listing agent thinks?  Contrary to popular belief, short appraisals are rarely wrong.  

If the listing agent wants to challange the short appraisal, let them.  It is not your job however to raise the price if you are really a buyers agent.  Your job is to get the lowest price and most favorable terms for the buyer which means getting the seller to lower the purchase price to appraised value.


Feb 19, 2016 12:10 AM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

"My buyer does not want to overpay. We need to buy for the apprised value not the negotiated price."

Since I usually represent the seller, and I will not allow the seller to be vitimized by the lender the buyer chooses,  The buyer will be given the option to reconsider, find the gap money, otherwise this house is not for them. Usually this is resolved BEFORE the appraisal is requested.

Feb 18, 2016 11:53 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

At that point, the who deal is up for negotiation. Seller doesn't want to sell at appraised price, and buyer doesn't want to overpay. Someone, or both parties, are going to have to give, or you may no longer have a deal.

It may have a lot to do with how hot the market is, or whether it is a buyers market.

Feb 21, 2016 02:51 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

There are few options - buyers pay the difference, seller brings down the price or split the difference by mutual agreement.

Feb 20, 2016 02:11 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I try to get the best deal for my buyer and get the seller to move all the way down to the appraised value. Buyers in my area rarely pay over appraised prices and will walk away.

Feb 19, 2016 10:37 AM
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

As long as the appraisal is "the" appraisal done on behalf of the buyer's lender, then simply send over a copy of the appraisal and let the listing agent know that the band will only loan X amount of dollars on the place. That may or may not do the trick depending on lots of factors in the situation ie - were there competing buyers for the place, is there a signed around back up offer, can the buyer cover the spread?, can the seller afford the lower price without becoming a short sale?? etc

Feb 19, 2016 12:03 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

offer at the appraisal price.

Feb 18, 2016 11:57 PM
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Thanks for the Question

Feb 18, 2016 11:44 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

there are situations when it can be negotiated and other situations when it cannot.... too many scenarios for this question.... 

Feb 18, 2016 11:42 PM
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Lately, we have an appraisal higher then purchase price.

Dec 01, 2019 09:31 AM
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

You got great answers. I found some useful information for me too. 

Dec 01, 2019 09:20 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Depends on how strong your case is.

May 21, 2019 09:02 PM
Bill Dean
Haggerty Team St. Louis, Mo. - Fenton, MO
William Dean - Broker, Salesperson

Came here looking for answers since my seller just got hit with this , There are some good answers here but   How does a seller make the challenge?

Aug 05, 2016 01:56 AM
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale

Mike and Eve have nailed it with their answer, Anonymous.

Feb 24, 2016 09:02 AM
Melissa Jackson REALTOR
Trinity Premier Properties - Azle, TX
Helping You Make The Right Move

Interesting  answers. Lots of good advise.

Feb 22, 2016 12:02 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Did just have an appraisal come in low on my buyer's purchase.   There was no verbiage in the contract about bringing the difference to closing.  Agent asked to "split the difference", but had to remind them, the buyer did not have to.   We did an amend lowering the price.

Feb 19, 2016 11:04 PM
Brenda J. Andrew
Professional Realtor in Conroe/Willis, TX

Even though I was the buyer's agent, I would still pull up comparable properties to see if there were any additional comps.  If it truly is lower, then the buyer will have to decide if they want to move forward and pay additional, or see if the seller will come down to the appraised value.  Sometimes appraisers may miss some comps.  I try to work it out between the parties and exhaust every opportunity to keep the sale moving forward, if that is what my buyer wants to do.  If you are the buyer's agent, the appraiser will accept the additional comparables from you.  It requires a little extra time, but worth it in the end if everything works out.

Feb 19, 2016 09:19 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

It depends.   How is this issue addressed in the contract?  Is there an appraisal contingency?   

Feb 19, 2016 05:38 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

You have to let the seller know and see how our buyer might feel about bringing funds to the table. There are a number of ways to work this. 

Feb 19, 2016 11:49 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Do not let the buyer overpay, that is how people get in trouble if the market turns


Feb 19, 2016 09:45 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Start out first asking the seller to reduce the price. Depending on what market you are in (sellers or buyers) expect tp negotiate!

Feb 19, 2016 08:30 AM
John Pusa
Glendale, CA

This is very good question.

Feb 19, 2016 08:24 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

The others have answered the question.

Feb 19, 2016 07:28 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Depends on the market and the buyer. Buyer would likely want to not pay more than appraisal and if seller will not drop the price we're gone. I did have a buyer who was willing to pony up some cash but that's only happened once and buyer and seller split the difference. 

Feb 19, 2016 07:00 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I start at the appraisal price as the buyers agent!

Feb 19, 2016 05:01 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I tell the sellers that we are not interested in paying more than the property is worth.

Feb 19, 2016 03:48 AM
Bill Dandridge
MKB, Realtors - Roanoke, VA
GREEN, ABR, GRI, EcoBroker

I would tell the sellers that the bank will not make a loan for more that the appraised price for the buyers.

Feb 19, 2016 03:31 AM
Toronto, ON

The negotiating tactics depends on a number of specific factors in each situation.

Feb 19, 2016 03:24 AM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

This happens often enough.  As the seller agent I request a copy of the appraisal.  I won't negotiate without it.  I look at the comps used.  I have challenged them before.


As the buyer's agent, I've used them to get price reductions/credits in escrow.  No buyer wants to over pay and no bank wants to lend (it seems like at all these days).  Annette Lawrence , Palm Harbor, FL 727-420-4041 has the best wording on what to say.  The sellers can negotiate or say "take it or leave it."  This is where you earn you commission.

Feb 19, 2016 03:01 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Propose to split the baby at some point.

Feb 19, 2016 02:44 AM
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Depends on the situation. when representing a buyer we often include a clause in the contract "or not more than X% above appraisal". Our lenders have no control over who does the appraisal. If I know it is low I challenge it. Otherwise let the buyer decide if they want to add cash or not. Seller decides what they will accept.

Feb 19, 2016 01:53 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Lower the price to the appraised value or walk. I have heard of buyers splitting the difference, if they really want the property.

Feb 19, 2016 01:06 AM
Roy Kelley
Retired - Gaithersburg, MD

You have received some good answers for your question.

Feb 19, 2016 01:06 AM
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

Work with the listing agent to challenge the appraisal and get reconsideration.  Present compelling, factual information that at minimum, supports the contract price.

It's difficult, because you're basically telling the appraiser they're wrong. People don't like to hear they are wrong, but challenging an appraisal can sometimes be successful.

Most often, the buyer and seller move toward the middle, with each party agreeing to make a concession.  

I've never suggested that a seller simply reduce their price to the appraised price and I can't see that I would unless under extraordinary circumstances where the seller is getting value elsewhere. 

Feb 19, 2016 12:38 AM
Jack Lewitz
Exit Strategy Realty - Evanston, IL

Is the accepted offer within reason ? Can buyer pay difference? Will seller reduce price ? Will seller pay closing costs ? Is buyer and seller prepared to walk away from the deal ? Surely there is a way to compromise but remember the lender is not one who will compromise.

Feb 19, 2016 12:37 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You negotiate fairly.

Feb 19, 2016 12:11 AM