A Florida purchase contract includes an appraisal contingency stating the property must appraise for at least the purchase price of $350,000. The appraisal comes in at $340,000. What options does the buyer have?
Correct Answer
C) Can cancel or negotiate with the seller
Correct: C - With an appraisal contingency, the buyer can choose to cancel the contract or attempt to negotiate with the seller when the appraisal is low. Why not A: The contingency protects the buyer from this obligation. Why not B: The buyer can cancel regardless of seller's position. Why not D: The buyer is not required to reduce their offer.
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