Negotiation #16: The Appraisal Gap | FSP Agent Training

When the appraisal comes in short, the conversation should already have happened at contract time, while it was theoretical. The Davidsons' house appraises at $465,000.00 against a $475,000.00 contract, and the lender lends 80% of the lower number. Learn the four ways out (the seller comes down, the buyer brings cash, meet in the middle, or the deal falls apart), who blinks, and why a reconsideration of value goes through the lender, alongside the negotiation. They meet at $470,000.00. In the Johnsons' chair, knowing how each offer was written pays off: Buyer B's appraisal gap addendum covers a $2,000.00 shortfall, and the price holds at $340,000.00. Plus Mark Casper's story of two banks: find out who bears the loss before you push. Related lessons: The Low Appraisal (Buyer Side) · Knowing When to Fold (Negotiation) The Third Answer: negotiation for the real estate professional, told through one story with two sales. Part of How to Be a Real Estate Salesperson, the agent-training curriculum from Mark Casper, Managing Broker, BHHS Florida Showcase Properties. ⚠️ Internal training. Follow current brokerage policy.