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We've recently been having some issues with appraisals on homes in Jupiter, and I'd like to clear up these issues in this video.
When a home doesn't appraise to the market value that's being asked for it, what happens and who pays the price? Typically the rule is that if you are financing and you bring less than a 20% down payment on a home that does not appraise, then the terms of the loan will likely change. You can then use the appraisal to bargain with, or opt-out of, the contract.
However, if you are only financing 50% or 60% of the home, then the seller does not have to come off of their asking price. If the seller is pushy enough, they can force you to purchase the home or lose your escrow deposit. The only way to protect yourself in a situation like this is to have an appraisal contingency written into your contract. This way, if it doesn't appraise, you can opt out any contract no matter what type of financing you have on the home.
This is a very shortened version of what you should do if your home doesn't appraise, but please come to me with questions if you have them.
