Legal Question in Real Estate Law in Georgia
Low Appraisal - Buyer refuses to close
I am selling a condo in Atlanta. A buyer made an offer, contingent on a) financing and b) appraisal at or above the contract price. The contract doesn't specify who is to conduct the appraisal. Our closing is supposed to be six days from today.
The lender's appraiser appraised the property several thousand dollars below the contract price. I am confident the buyer can still obtain the mortgage, even with the low appraisal. Can I order my own appraisal to satisfy part (b)? I believe the lender's appraisal is inaccurate and artificially low.
This seems to be a tactic by the buyer (with the cooperation from the lender/appraiser) to avoid having to close on the condo. If I obtain an appraisal above the contract price, can I keep the buyer's earnest money?
Finally, the buyer/lender refuses to release the appraisal for our review.
I plan to retain an attorney if necessary. Thank you in advance for your time and advice.
2 Answers from Attorneys
Re: Low Appraisal - Buyer refuses to close
You probably are right to talk to a lawyer. However, I don't understand why your buyer, having signed the contract, would fiddle around with an artificially low apprasal to get out of it.
Re: Low Appraisal - Buyer refuses to close
Speculating about a conspiracy is probably a waste of time. If you get your own appraisal, the buyer can post a note here saying the same things about you and your appraiser. Lenders and appraisers are not likely to risk their licenses for a condo sale. However, the place to start is to get your own appraisal. You should also insist they provide a copy of the appraisal to evidence the contongency in the contract. If, after seeing two appraisals, you cannot resolve it, you will have to decide whether it is worth the money to pursue it in court.
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