House appraised for less than my offer. What now?

[Eugene Lubman]

Hi all,

I am about to close on my first house hack (4-unit), but the appraisal came in at 7% less than my offer. I am financing with an FHA loan, and the lender will not approve a loan above the appraised value. My agent shared the appraisal report with the seller and is trying to renegotiate the price. If the seller refuses to sell it for the appraised price, what are my options?

Gene

[Anthony McEvoy]

@Eugene Lubman - You can bring the extra cash to closing to cover it.  Ask the seller if they want to finance the purchase for a year or two and then refinance.

Did you review the appraisal?  Do you agree with the inputs?  Double check the appraisal to ensure they have correct square footages, bedroom counts, bathroom counts, etc.  Also, take a look at the comparable buildings they used.  Ensure they are true comparable.