The Bank's Appraisal For The Purchase Price Was Lower - Ouch!

I had a rough last week.

My buyer came back from training and told the he had received the business appraisal and it was "bad news". It was. The appraisal came in $360K less than the contract price. I decided that I wanted the deal to go through anyway, so I negotiated a new contract price based on the business appraisal that came back from the buyer's bank.

I made the buyer deposit and additional $350,000 into escrow and remove all contingencies and agree to close escrow by January 15, 2006. After signing the addendum I found out that the buyer had another bank approval that was way closer to are contracted price.

I don't know what the loan commitment amount came in at because the buyer kept that information from me. I do know that he would not have kept it from me if it was advantageous to him.

I consider this a big lesson learned.