order of events after accepted offer

rtaggart613

My husband and I offered on a house, but we're afraid the house might appraise less than what we offered. This is our first house, so we're not sure what happens next. We would of course be getting the inspection, but we don't want to waste a few hundred dollars on that if financing won't work because the offer is too high. Anything we can do? Or do we just get to choose the order of things anyways?

atlcatlover

You should have an appraisal contingency that states that the seller lowers the price to the appraised amount if it comes in lower than the agreed upon price.

forcuatro

We wrote in a contigency with our buyers. They were very generous with their offer but they wanted closing costs (3%). I didn't think the house would appraise for the amount they offered so we wrote in that if the house appraised for less than the offer we would meet in the middle on price. So, basically, the house appraised for $5k less than their offer. We lowered the price by $2500 and they got $2500 less in closing costs. It woked well for both of us, I think. They still walked away with $2350is for closing.