Selling a home for more than the appraisal
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Selling a home for more than the appraisal
I sold a home for 140000 and the appraisal was 130000 and now the realtor told
me that I cannot sell the home for any more than the 140000 unless the buyer is
a cash sale. Is this a law in the state of FLorida??
Asked on May 30, 2018 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
The problem is not the law prohibits selling for over the appraisal, but that banks and lenders will not--and to a large degree, given the regulations governing mortgages, cannot--participate in a sale for more than the appraised value: i.e. you generally can't get a loan when the sale price exceeds the appraisal. That's why you can do a cash sale--i.e. you can sell the home for whatever you and the buyer want so long as a commercial mortgage, banks' underwriting rules, and the various regulations and laws pertaining to mortgages are not involved.
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