Home Appraisal Clerical Error

[Ryan Jones]

Recently had a home appraisal come back low compared to contract price. Once I looked at the report I realized the listed contract price on the appraisal was incorrect. It was listed at 15k lower than what it actually is. This lower price is what the appraisal came back at (no doubt influenced by incorrect contract price).

We are currently awaiting to see if this can be corrected and change the appraisal.

In the mean time, the home inspection revealed the roof is nearing its end of life. The seller agreed to pay for a new roof as part of escrow. It happens the roof comes out to 15k. The roof is not actively leaking, it’s just known to be in need of replacement in the near term.

Additionally, my offer was accepted above asking price due to a few bidders. Coincidentally, I waived 15k above appraisal to seal the deal.

This creates a situation where- only because the roof and the clerical error are equal - an option exists for me to “accept” the lower appraisal, skip the roof replacement and close at the appraised price (happens to be original list price). This would lower the mortgage payment, closing costs, and property taxes. Then, in a couple years I could replace the roof at my discretion.

On the flip side, if the appraisal does get revised, I could continue as originally negotiated essentially rolling a new roof into the low rate 30 year mortgage loan.

The more I consider it the more the lower closing price and payment sounds desirable with the exception of needing a new roof literally hanging over my head.

What would you do?