“Renegotiating After a Disappointing Appraisal”

My clients did a rent with option to buy. They agreed upon a price for this log cabin was $275,000. The agreement was for 3 years and that is a year from now. I let them know at the time we did the application that I was concerned about the appraisal. First, there are not a lot of log cabin comparable sales and second, based on square footage, I felt there might be an issue.

Sure enough, the appraisal came in at $246,000. I sent over the appraisal and they were going to attempt to renegotiate the price. I hate the idea of buyer and seller actually negotiating with one another without the assistance of a Realtor, but they began the process.

They finally agreed on a price of $265,900. The buyers were willing to come up with the difference and not deal with having to move and they felt they would be in this home for many years. Both parties handled the negotiations in an honorable way and didn’t allow personalities and ego to get in the way. This is not usually the case, without a third party handling the negotiations.