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Hopefully your purchase was contingent on the appraisal meeting the sale price? Then you have room to negotiate since the seller can’t make you purchase the home with that clause. You can try to make the seller eat the difference by threatening to have it go back on the market. Easiest path is prob to split the difference if you have the cash
Your lender will make you make up the difference one way or another. Ask the seller to reduce purchase price by $20k, if they refuse then you have to evaluate whether it’s worth it for you to cover the additional outlay
SC1 is right. Happens all the time in NYC, especially on popular properties that had received multiple offers etc. and the price got driven up. When I sold my place the contract was clear that the buyer was responsible to make up that gap out of pocket. So depends what you signed, it’s probably black and white what your options are. Unless you made the agreement contingent on the property appraising for the sales price then I’m pretty sure you’re on the hook for it.
My appraisal came in 6k lower, I paid it out of pocket.
I’d find a new house if that option is avail ..
If you like the house 20k isn’t going to make or break you. I’d go back to the seller and tell them to make up the difference. They aren’t going to walk away for 10 or 20k
Thanks everyone! As a first time home buyer I didn't really know what to expect. My buyer's agent assured me that the price I put down was market value but was feeling a bit cheated when the appraisal came back. I do have the appraisal contingency in the contract. I will wait and see what the seller is willing to do.
Good plan. What is the total purchase price? What city?