All Forum Posts by: Nicholas Grell

@Dan H., we have offered the Buyer multiple options to remedy this issue, including the option to quit without penalty even though they released their finance contingency. We seem to be holding all the cards in this situation, and yet they keep doubling down, so we just want to make sure we aren't missing anything. 

Here is the language of the Buyers Counter Offer Terms

1. Price is X

some other terms

3. Should property fail to appraise, Buyers agree to pay any difference between appraised value and sales price up to a maximum of $10,000. but no more than the agreed upon price.

They want to supersede Term 1, with Term 3. 

Steve Morris - so you read an appraisal gap clause as a price determiner? Buyer's offer's main term was a purchase price of X that they are no longer willing to pay. Appraisal gap language does not say - we will pay this much over appraisal, and appraisal shall determine final purchase price. 

All kinds of things are initially included in offers, that are then renegotiated as the deal proceeds. Buyer's specifically said they wouldn't ask for Termite, guess what, they did! I don't understand what the amount over offering has to do with it? We had 3 other very similar offers, perhaps we priced too low. 

Is there precedence for your interpretation, as this is not the advice of our agent? I am trying to figure out where we stand here and how to proceed. 

We are selling our primary home in a very hot San Diego market. We received multiple offers, pushing the price 40k+ over asking. Accepted offer came from a buyer  utilizing an appraisal gap clause to offer an addition 10k over appraisal. We got hit with a rather low appraisal that even with the 10k, leaves an 8k shortfall. We have tried all lines of negotiation with the buyer (request second appraisal, split the difference, accept lower price with allowance of 1 month free rent back), the agents have even offered to throw some commission back, but the buyers refuse. They believe (and are being advised), that we as the sellers are contractually obligated to sell them the property at this now lower price of appraisal + 10. We are now being threatened with a lawsuit after close if we do not oblige them. Our broker’s attorney thinks it’s crazy, but the buyers are now being represented by a well seasoned California real estate attorney. What are we missing here? We’ve done so many investment real estate transactions, but of course the first sale of a “family home” and it all goes awry. Any advice would be greatly appreciated!