CHAPTER 15 Closing the Deal
You are in the final stretches. The contracts have all been signed. The closing is scheduled. You ordered the mover and called the utility companies. You even remembered to have your home insurance transfered to your new home.
BUT things can still go wrong. You need to be prepared.
THE HOME FAILS TO APPRAISE
This happens all too frequently in a sellers' market when homes are receiving multiple offers and a bidding war breaks out. What seemed like a great offer -- $40,000 above asking -- can turn into a nightmare when the buyer's bank appraises the house for $50,000 less (i.e. $10,000 below the asking price). Suddenly you are being asked to dramaticly cut the price. You may be able to reach the other bidders who lost out on buying your home the first time, but then again, you may not. Your real estate agent and the buyers' real estate agent will need to prepare a detailed rebuttal to the appraisal from the buyers' lender. There is, however, no guarantee that the rebuttal will be accepted. You might be able to get the buyers to change lenders -- which by definition means a new appraisal will be ordered. You may decide to order your own appraisal. If it shows numbers which are helpful, it can be shared with the buyers, their lender etc. What you cannot do is insist that the buyers' bank use your appraiser. The lender, by law, must obtain an independent appraisal.
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