Thread: Is this a seller's tactic?

It might be a seller's tactic, but you have no time. Sellers know you were ready to pay $230K (you put it on the contract). If you really like the house, pay for it. If you think you are overpaying it, get out now, and try again with a new deal...
Your situation shows a clear lack of negociating skills from your agent...

I'd recommend reading your contract carefully, particularly the rules regarding the appraisal. If the property was contingent on appraising for the price you are offering, and allows for refund of your earnest money, then you may have the option to get out of the contract and get your earnest money back.

If your earnest money was deposited to escrow, then you may need to get the seller to release it or go to arbitration or court depending on your contract.

It's probably not the seller's fault that the appraisal didn't come in at the price you agreed to. Markets change and lenders and appraisers are being more conservative these days. You can always get a second appraisal which might come in higher, but if your seller isn't willing to come down at all then you may be best served by walking away. It depends on how bad you want the house and whether you can come up with the difference between the appraisal and the original price.

Disclaimer: I am not a lawyer and this is not legal advice and I always recommend consulting a lawyer.

If you have a loan contingency in your contract, it should cover this scenario and you should not lose your deposit.

Get your agent to run comps and see what the real value of the house is.

Appraisers are people and could be wrong. However the listing could be over priced. I have seen many listings priced from one comp and all of the rest were much lower.

I have also seen agents price homes based on other homes on the market. (which is crazy)

If the house has comps to support the price you are willing to pay get another appraisal if not most people won't pay that much above appraised value so the seller will need to come down for the next buyer.

Tony Zito

Just as the other said, make sure to go over your contract carefully. if this house is in a good location and it suits you than just buy it. If you think you're getting a bad deal than just opt out. Also, you may want to look for another agent if you do decide not to buy.

Why would you pay more for a home than it's worth? If the seller wants to sell the home, then they will eventually have to come down on price. Nobody is going to overpay for the property, not in this market.

Your contract is probably contingent on lender financing and the appraisal. There are usually 3 things that you can do at this point. You can terminate the contract, overpay for the home by coming up with the extra cash or the seller needs to come down on price.

Contracts are very important and signed for a reason, you need to decide if you really want the house that bad that you are willing to pay for it. Of course it is a tactic but if you signed the contract well you need to go on with it for sure.