Market Price versus Appriasal Price!!!

Lenders are afraid of prices going lower, so they want to make sure that there is enough equity in a property to ride though future rough spots, hence why appraisals are coming in low. This can make for problems with a transaction in this market. Even when buyers are willing to purchase and sellers are willing to sell at a higher price, they have to aware that the appraisal may come in low, even though the house may be worth more. The bank is trying to protect their investment for the unforeseen future, not just for today.

The seller will have to lower the price to make the transaction work or the buyer would have to bring more cash to the deal. The deal could be over if neither of them want to compromise. This is one area where an agent can help negotiate the deal to a happy ending for all.