Once your home appraisal comes in, you’ll have yet another opportunity to renegotiate — at least if the appraisal comes in low. If the appraised value is higher or equal to your purchase price, that’s the ideal situation, and you’ll proceed as usual.
If the appraised value is lower than your purchase price, you’ll have two negotiation options:
- Ask them to lower the purchase price to meet the appraised value. If you initially offered $200,000, but the appraised value came in at $195,000, you can ask the seller to accept the lower, $195,000 instead.
- Meet somewhere in the middle. You can also ask the seller to split the difference. In the previous example, that might mean the seller accepts $197,500, and you contribute the other $2,500 out of pocket.
- The ability to renegotiate is dependent on the market you’re buying in. If homes are selling quickly, you may not have leverage. If homes are taking a long time to sell, you hold the cards.
Be sure to work with your real estate agent closely during any re-negotiation. They’ll have a good handle on the market and will ensure your best chance of success.
