Finance
A Mississippi homebuyer's lender orders an appraisal that comes in $15,000 below the contract price. Which statement is most accurate?
AThe buyer must pay the full contract price regardless of the appraisal
BThe buyer, seller, or both may need to renegotiate; the lender will only loan based on the appraised value✓ Correct
CThe appraiser's value automatically becomes the new purchase price
DThe buyer's agent must order a second appraisal at the buyer's expense
Explanation
When an appraisal comes in below the contract price, the lender will only finance based on the appraised value. The parties must then either: the seller reduces the price, the buyer pays the gap in cash, they split the difference, the buyer challenges the appraisal (reconsideration of value), or if there is an appraisal contingency, the buyer may terminate.
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