No appraisal contingency..low appraisal

[lezammer]

Hello. Purchasing a FSBO home and we have never bought a home FSBO. We signed the contract with purchase price of $748,000 with a $21,000 deposit. Contract did not have appraisal contingency (we didn't know we should've had one and our lawyer should have but never mentioned it to us). Appraisal came back at $665,000. (An $83,000 difference). We understand that we could renegotiate with sellers but they are under no obligation to do so. Sellers are very anxious to close as they are relocating to another state for job reasons, which could give us some leverage. We don't want to walk as we love the house (but we don't love it enough to pay that much over) and will probably lose our deposit, but could sellers also sue us for breach of contract? Just don't know what to do.
Also, appraisal had our house as 3 bedrooms, 1.5 bath when in fact it is a 4 bedroom (attic has a bedroom) and a full bath in basement.
Supposed to close next week.
Please help.....

[Codythebest]

Looks like you hired a sharp lawyer :(
Try the inspection contingency to get out...if you lawyer thought about it of course...
Other than that, little to do except to take this experience as a wake up call to hire a Realtor for the next time...AND FOR FREE!!




How much cost your liar...oops...your lawyer?

[REbuyersgroup]

Is there a finance contingency? Based on the contract, if you can't qualify for a loan based on the appraisal, the deal is off anyway.

I'm confident there are plenty of loopholes to fit through.

[IggysListing]

All appraisers are not created equal. Get a second opinion.
As you already know, a competent real estate agent could have
helped prevent this. It is possible the appraisal is incorrect.
I have corrected at least 2 bad appraisals in the past.
Do you know a good real estate agency/agent? You may get
some free advice. If you can find one, have them look over the
appraisal and if it looks flawed, recommend another appraiser.
Best wishes.