The dreaded call that all agents hate to make, “Sorry Seller but the house did not appraise for the purchase price.”
So what happens next?
If the contract contains an appraisal contingency, Paragraph 6E of the Central Carolina Realtors Association contract controls. The contract maintains that should the property appraise for less than the selling price, the Buyer will have one business day after notification of the results to either:
1) proceed with the sale without regard to the appraised value,
or
2) attempt to renegotiate the contract.
If after one business day the Parties are unable to reach an agreement then either party may terminate the contract.
If the house does not appraise and the Buyer decides within the first 24 hours that she wants to proceed with the contract price, the Seller may not terminate the contract. The appraisal contingency protects the Buyer only. Also, the appraisal contingency does not expire prior to the closing like the financing contingency does. The appraisal contingency is separate and apart from the financial contingency.
Historical Fact- May 8 marked the 50th Anniversary of Martin Luther King, Jr.’s “March on the Ballot Box Speech.” Rev. King wrote many of his speeches while in South Carolina. King often found refuge in St. Helena and spent much time writing at the Penn Center. The “March on the Ballot Boxes” speech was written in South Carolina and was delivered in Kingstree to 5,000 people urging them to exercise the right to vote. Historians believe this to be one of three public speeches delivered in the Palmetto State.