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Buyer can make up the difference between the appraised value (what the bank is willing to lend) and the purchase price, OR walk. It all depends on the purchase contract
Coach
Unfortunately the market has shifted and buyers are no longer waiving contingency regularly because there are fewer bidding wars.
Appraisal waiver and or inspection waiver can be part of the offer (it was quite common when the market was super hot). Say buyer waives 10k for appraisal, if the appraisal came back 10k lower than asking, the buyer will absorb that 10k, if it is more than 10k lower then the buyer might negotiate or pull out.
Subject Expert
When you select the offer to accept you would consider if they are covering all or some portion of an appraisal gap. For example someone might agree to cover $30k of any appraisal gap. If you have multiple offers, you might take one with a no appraisal contingency over a higher offer that includes an appraisal contingency if you are concerned that the property won’t appraise to the offer price.
Mentor
No you’re not. Just move on to the next offer. They’ll make up the difference if they care enough
Also, never work with VA loans. They do this on purpose every single time, no matter what the house is worth