When the appraised value of a home falls short of the purchase price, buyers may wonder who is responsible for covering the difference. The answer is that the buyer is typically responsible for paying the difference between the appraised value and the purchase price in cash. However, there may be some exceptions to this rule depending on the circumstances of the sale. Here are some things to keep in mind: – In some cases, the seller may agree to lower the purchase price to match the appraised value. This is more common in a buyer’s market where there is more competition among sellers to attract buyers. – Buyers can also negotiate with the seller to split the difference or cover some of the cost in other ways, such as paying for repairs or including appliances in the sale. – If the buyer is unable to come up with the extra cash, they may be able to back out of the sale if there is a financing contingency clause in the contract. – It’s important to keep in mind that the appraised value is based on market conditions and other factors that can fluctuate over time. It’s possible that the value of the home will increase in the future, which could help offset any initial loss. Ultimately, the responsibility for paying the difference between the appraised value and the purchase price falls on the buyer. However, there are ways to negotiate and work with the seller to come up with a solution that works for both parties.