We ended up going to a real-estate attorney in town and the suggestion was to remove line item 2 and add the verbiage "Buyer agrees to pay the contracted sales price OR the appraised value, whichever is greater." 3. If you want to sign the addendum, I would counter by saying that "Seller accepts appraised value and buyer is required to personally increase their down payment to cover any price differences between the appraised value and the purchase price.". Purchase Price Reduction. As an update: buyer signed a pa with incorrect sales price on it seller sent addendum with correct sales price on, buyer never signed, it decided not to buy right now because of money issues. Good luck to everyone else out there and a huge thank you to the MND folks that responded to the question. In some […] If lender prohibits Seller from payment of any portion of such credit, then said credit shall be reduced to the maximum amount Ted, Yes, this may be a sneaky ploy to lower the value of the purchase agreement. My short sale settlement letter states "any changes to the sales price may constitute a re-submission of a short sale offer making … If you have an agreed price of $250,000 but then there is an addendum dated some days later stating that you will … As it turns out, the appraisal came in at about 7.5% above the sales price which is why they added that language - so that we wouldn't come back and try to negotiate more (why they didn't just keep their mouth shut and push to close faster is beyond me since we never would have known). Purchase Agreement Addendum. You don't necessarily have to ask for the full amount of the repairs, though. From and after the date of this agreement, SELLER agrees to permit BUYERS, and their designees, reasonable access by appointment to the premises for the purpose of making measurements, inspections and the like. Purchase agreement addendums, also referred to as “amendments,” are forms that are added to a sales contract at the time of authorization or after it has been signed in order to change or add to the terms of the arrangement between the parties.Both parties are required to sign an addendum. We also found the easiest way for us to find out what the appraised value was to have our lender (for the house we are attempting to purchase) get a hold of the lender of the people who are buying our house. Let's say, for example, that the seller of a beautiful home in a highly desirable neighborhood in Elk Grove, California, decides to list his home at a price of $550,000. Prepare a counter-offer that asks the seller to reduce the selling price of the house by a figure you’ve determined will compensate you for the needed repairs. If you have an agreed price of $250,000 but then there is an addendum dated some days later stating that you will accept the value of the appraisal, it may indicate that you are willing to accept the appraised value as the purchase price. An addendum refers to a document usually added to the original contract. An addendum can be utilized to lower the purchase price or modify any other term the parties would agree to. Start a free trial now to save yourself time and money! Ask the sellers for a price reduction in line with any discrepancy between the appraised value and the purchase price. . LIKE #1. For example, if the buyer needed the appraisal to come in at $300,000 but it comes in at $290,000, the buyer can pay the $10,000 difference in cash. Disapproved Contracts. Purchaser shall proceed with this Contract at the stated Sales Price without regard to the Appraised Valuation of the Property. the sum of $ _____ OR _____ % of Purchase Price towards Buyer’s settlement costs.