×

Go Back

Advice Topics

Top Contributors (View All)

Find a Top Real Estate Agent Near You

Search Now

What if a home appraises for more than the offer?

I'm worried the home will appraise for more than what I offered. The seller agreed to the offer and we both seem fine with it. But if the appraisal is more than to the offer will I need to pay more to get the house?
Asked By Cameron | Marina del Rey, CA | 908 views | Buying | Updated 1 year ago
Answers (8)
Sort By:
profile img
Rising Star
15 Answers
Arlene Modarelli

Fathom Realty

The appraisal is confidential information that you paid for not the seller.
profile img
Rising Star
14 Answers
Raquel Penas Fernandez

RE eBroker Group

(15)

The appraisal is yours and is only shared with your agent if you provide permission. You don't have to disclose to the seller what it appraised for.

Are you ready to find a top agent near you?

Browse profiles of the highest ranked agents in your area and find one that meets your specific needs.

Search
profile img
Novice
7 Answers
CHRISTINE GARDNER

Berkshire Hathaway Gross & Jansen

(55)

This is a wonderful issue, you have equity in the property!
profile img
Novice
2 Answers
Rita Sutton

BHHS Select Properties, Troy, MO 63379

In my area, I do not share the appraised value with the seller/sellers agent when representing a buyer. The terms of the sale contract or amendments to it will determine the purchase price.
profile img
Novice
2 Answers
Marine Janikyan

JohnHart Real Estate

(92)

No, you do not have to pay more if the home appraises for more than your offer. When you get a mortgage, your lender orders an appraisal to confirm the property is worth at least what they’re lending you. If the appraisal is more than your purchase price, the lender is happy. If the appraisal is lower than your purchase price, that’s when problems can happen.

When the appraisal is higher than your offer, this is good news for you. If your contract price is $500,000 and the property appraises $530,000, it means you have instant equity and you still pay $500,000. The seller cannot raise the price after accepting your offer.

If your contract price is $500,000 and the property appraises at $470,000, due to the discrepancy in the appraised value being lower than the contract price, the $30,000 needs to be addressed. Either by renegotiating the contract price with the seller, bringing in extra cash, or walking away from the property (depending on your appraisal contingency).

All in all, if the seller already accepted your offer and the home appraises higher, you simply proceed at the agreed price. No extra payment required.

It’s the best-case scenario for a buyer.
profile img
Novice
1 Answer
Delta Guillory

Keller Williams Lake Charles

(2)

No, you do not have to pay more than you offered. The contract you and the seller signed is the agreement of the price even if the home appraises more than the offer price.
profile img
Novice
1 Answer
Kelly Gonzalez

REAL

(10)

Congratulations you have instant equity! Here in Texas only the buyer has access to the appraisal and knows how much it appraises for. We just tell the Seller that it met appraisal.
profile img
Novice
1 Answer
Victoria Lyford

Weichert Realtors Team Metro

(13)

I never share the appraisal report with the sellers when I represent the buyers. I just say that the house appraised and we can move forward.

Related Questions

Search for Agents by Top U.S Cities
Search for Agents by States
Search for Company by States