What happens if the appraisal value is lower than the Option Price?

My appraisal came back low, what are my options?

If the appraisal value is lower than the Option Price, a resident has three options:

1. Contest the Appraisal Results: The resident can challenge the appraisal results by providing evidence or requesting a second appraisal to potentially increase the valuation of the property.

2. Make Up the Difference: The resident can choose to proceed with the purchase by paying the difference between the appraisal value and the buyback transaction price out of pocket, ensuring the purchase can still go through at the agreed buyback price.

3. Postpone the Purchase: The resident can decide to delay the purchase until market conditions improve and the appraisal value aligns more closely with the Option Price, potentially avoiding the need to pay the difference out of pocket.