Is it possible to seller finance an appraisal gap? (Ideas to cover the gap!)

[Daniel Gibson]

Hi BP,

I'm looking to purchase a property (offer accepted at $485k) however the appraisal came in $30k under ($455k) which I'm unable to cover. The seller (so far) isn't budging and has refused to lower the purchase price. 

A few questions: 

1. Has anyone ever seller finance the the appraisal gap?

2. Beyond submitting alternative comps to the appraiser and seller financing the gap, does anyone have any other tactics to help close the gap or cover it?

For context, the property is a 3 bed, 3 bath and interestingly, although the other 3 comps have sold recently, in the same area (>1mile radius) and had similar sqft, they were all 3 bed, 2 baths...I'm wondering whether this is grounds to push back on the appraisal? 

Within the property I'm looking to purchase, there's also an attached ADU with a full kitchen, full bath, and bedroom, which I intend to rent out. I'm wondering whether appraisers take the earning potential into consideration when assessing the value?

A HUGE thank you to anyone willing to share any knowledge, tips, tricks of the trade.

This would be property #3 but the first I've encountered where the appraisal is less then the offer price.

Gratefully, 

Dan

[Chris Seveney]

@Daniel Gibson

Not to sound sarcastic but Would you give someone $50k for a car worth $10k?

If you were to get additional financing even from the seller you would have to inform the first lien holder who in this case I would bet 100/100 times they would absolutely say no to this.

If the seller is stuck with their number - walk away- wait 3 months and come back - if it’s worth less and appraisals show that then someone getting financing will be near impossible and only a cash buyer would most likely do it which is unlikely unless this property Is a complete cash cow (which probably not the case in todays market)