Property Valuation
A property listed for $375,000 receives an appraisal of $355,000. The most likely outcome is:
AThe lender finances the full $375,000 purchase price
BThe buyer and seller must renegotiate, the buyer makes up the difference, or the transaction may not close✓ Correct
CThe seller is required to lower the price to $355,000
DThe appraiser is required to reconsider
Explanation
When the appraisal comes in below the purchase price, the lender will only finance based on the appraised value. The buyer must either make up the difference out of pocket, the parties must renegotiate the price, or the transaction may not proceed.
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