Property Valuation
An appraisal of a home in Charlotte, NC comes in $15,000 below the contract price. The most likely outcome is:
AThe seller is required to lower the price to the appraised value
BThe buyer must pay the full contract price regardless
CThe buyer and seller must renegotiate or the buyer may need to cover the gap or cancel✓ Correct
DThe lender automatically increases the loan amount
Explanation
When an appraisal comes in below the contract price, the lender bases the loan on the lower appraised value. The parties must renegotiate, the buyer covers the gap, or the deal may fall through.
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