Finance
A Minnesota lender's appraisal comes in $10,000 below the purchase price. The buyer has several options. Which option allows the buyer to proceed with the original price?
ARequest a new appraisal from a different appraiser
BInvoke the appraisal contingency to cancel
CPay the $10,000 difference out of pocket in addition to the down payment✓ Correct
DRenegotiate the purchase price down to appraised value
Explanation
When an appraisal comes in below purchase price, the buyer can pay the difference in cash (making up the gap between appraised value and purchase price), renegotiate the price down, appeal the appraisal, or cancel using the appraisal contingency. Paying the difference allows the transaction to proceed at the original price without requiring seller concessions.
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