Property Valuation
A Bismarck, ND property's appraisal comes in at $5,000 below the purchase price. The lender's appraisal contingency means the buyer:
AMust automatically cancel the transaction
BMay renegotiate the price, make up the difference in cash, or cancel if the appraisal contingency allows it✓ Correct
CReceives a $5,000 lender credit
DMust accept the seller's price regardless
Explanation
When a property appraises below contract price, the appraisal contingency gives the buyer options: negotiate a price reduction with the seller, pay the difference above appraised value out-of-pocket, or cancel the contract and recover earnest money.
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