RE/MAX AROUND ATLANTA
  • Home
  • RMAA HUB
  • Events
  • Local Service Providers
    • Attorney Partners
    • Lender Partners
    • Home Cleaning Services
    • Home Inspection Companies
    • Home Warranty Companies
    • Insurance Providers
    • Moving Company
    • Photography
    • Property Management
    • Repair Services
    • Residential Renovations
    • Security Systems
  • OUR TEAM
  • Online Payments
  • BROKER CORNER
  • Locations
  • MAXtech
  • Request Field Services

BROKER CORNER

Protect Your Seller From a Low Appraisal

7/6/2023

0 Comments

 
Picture
We often see special stipulations submitted by a buyer regarding low appraisals .  A typical special stipulation sets a high price that a buyer will pay, but not a low price that the seller will accept.   Listing agents can protect their seller against being forced to sell based on a very low appraisal.  Consider the following scenario.

A property is under contract for $735,000 with the following special stipulation:
“Buyer agrees to pay $5,000 over the appraised price if the property does not appraise for the offer price.”  The property does not appraise for the offer price and instead appraises at $660,000.

Does the Seller have to sell the property and at what price?

Because a special stipulation controls over previous inconsistent content in a contract, the special stipulation changes the price that the buyer pays.  The appraised price is $660,000, so the seller has to sell at $665,000, $70,000 less than the original contract price. If the seller refuses to sell at $665,000 and goes to court, a court would likely agree with $665,000.

To protect your seller, a better special stipulation should include both a low price a seller will accept and a high price that a buyer will pay.  If you are representing the seller, counter with this language to set a low price:

Buyer agrees to purchase the property for $5,000 over the appraised price. Notwithstanding the above, the purchase price shall not be more than $____________ nor less than $_____________.


Source:  Weissman Academy, Seth Weissman, Secrets of Safeguarding You and Your Seller. 


0 Comments



Leave a Reply.

    RMAA

    Real Estate News, Brokers Blog & More

    Categories

    All
    Broker's Corner
    Mortgage Minute

    Archives

    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019

    RSS Feed

RE/MAX AROUND ATLANTA
Phone # 404-252-7500
RE/MAX Around Atlanta licensed in the State of Georgia

© COPYRIGHT 2025. ALL RIGHTS RESERVED.
  • Home
  • RMAA HUB
  • Events
  • Local Service Providers
    • Attorney Partners
    • Lender Partners
    • Home Cleaning Services
    • Home Inspection Companies
    • Home Warranty Companies
    • Insurance Providers
    • Moving Company
    • Photography
    • Property Management
    • Repair Services
    • Residential Renovations
    • Security Systems
  • OUR TEAM
  • Online Payments
  • BROKER CORNER
  • Locations
  • MAXtech
  • Request Field Services