Appraisal Gap question???

[Brendan H.]

Question - can the seller back out of our contract? Purchasing a home for 500K, with 30K appraisal gap in the contract. Appraisal came in at 465K, so 35K below the contract price. We are willing to cover 30K. That leaves 5K gap still that we are not obligated to cover per the contract. Shouldn’t the seller be required to honor the contract, cover their portion (5K) of the remaining appraisal gap, and still sell to us? Doesn’t make sense that they can walk away, yet the contract they signed said we would only cover 30K on the appraisal gap. Does this question make sense? Has anyone run into this before as a buyer? Thanks!

[Wayne Brooks]

Not from the information you have provided.....Unless your contract specifically says the Seller will Lower their price to make up the difference, which I doubt it does.
This situation Allows either you to make up the difference or the seller to, but neither one is required to.
If you really like it, pay the difference or offer to split it......otherwise you walk away if the seller won’t budge.