Finance

An Oklahoma buyer's lender orders an appraisal. The appraisal comes in $15,000 below the purchase price. The most common outcomes are:

AThe transaction automatically terminates
BThe parties may renegotiate the price, the buyer may pay the difference in cash, or the buyer may exercise an appraisal contingency to terminate✓ Correct
CThe lender automatically loans the full purchase price
DThe seller must reduce the price to match the appraisal

Explanation

When an appraisal comes in below purchase price, lenders will generally only loan based on the appraised value. Options include: seller reducing price, buyer paying the gap in cash, renegotiating, or buyer exercising an appraisal contingency to cancel.

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