Updated February 2017

ISSUE:

The purchase price in the contract is $760,000. The lender’s appraiser only appraises the home for $730,000. The seller is willing to sell at the appraised value of $730,000. Is the buyer required to accept the seller’s offer to sell at the appraised value of $730,000?

ANSWER:

No. Under Section 2l of the Contract the purchase by the buyer of the home is contingent on an appraisal for “at least the purchase price.” Therefore, if the home does not appraise for “at least the purchase price,” of $760,000, the buyer is entitled to cancel the contract within five days after receiving notice of the $730,000 appraisal, whether or not the seller agrees to sell at the $730,000 appraised value. 

Arizona REALTOR® April 2008; updated November 2014


About the Author

Michelle Lind

K. Michelle Lind, CEO of Arizona REALTORS®, is also an attorney, State Bar of Arizona board certified real estate specialist, and the author of Arizona Real Estate: A Professional’s Guide to Law and Practice.
Please note that this article is of a general nature and may not be updated or revised for accuracy as statutory or case law changes following the date of first publication. Further, this article reflects only the opinion of the author, is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel.