The full explanation
With a VA loan, for example, you can request a reconsideration of value, negotiate a lower price with the seller or pay the difference at closing. An appraisal contingency in the contract can let you renegotiate the price or walk away from the purchase.
An example
Carmen makes an offer on a home, but the appraisal comes in below the price. Because her contract has an appraisal contingency, she asks the seller to lower the price instead of putting in more of her own money.
You will see it in…
- The appraisal report, compared with the price in your purchase agreement
- The appraisal contingency in your contract
- Conversations with your lender and the seller before closing
