Real estate: What happens if I buy a home for more than it’s worth?

A real estate appraiser’s job is to come up with the fair market value of a property. He or she isn’t employed by either the vendor or the purchaser. So, what happens in New Jersey if a real estate appraiser’s property value assessment comes in lower than the purchase price? A purchaser has a couple options. 

An appraisal is necessary 

First of all, purchasers should ever waive the appraisal. It may save them from getting in over their heads. New Jersey home prices have escalated and often winning bids are more than what the property is actually worth. There are some things that can be done when this situation arises: 

• A purchaser can make up the difference since it won’t be coming from a mortgage company or bank. 
• A purchaser can try to renegotiate the purchase price with the vendor. 
• A purchaser should speak with an attorney before doing anything. 

When a purchaser waives an appraisal 

In actuality, an appraisal will always need to be done on the property and is arranged by the bank or mortgage company. What the purchaser is doing when making the decision to waive the appraisal is saying that no matter what the outcome, he or she will purchase the home. If the purchaser has prepared for that possibility by saving funds to broach the gap, it shouldn’t be an issue. 

Some people go into a real estate transaction in New Jersey not knowing all the ramifications their decisions might have. It is crucial to have some idea of real estate law prior to making any rash decisions. If a scenario like the above-mentioned should occur. It is imperative to seek legal advice before moving forward.