Florida Real Estate Practice Exam

If a seller is concerned about an appraisal, what can a buyer do to address this need when structuring the offer?

1. Allow an escalation clause.

2. Offer a quick close.

3. Offer full price or more than full price.

4. Waive the appraisal.

The correct answer is: Waive the appraisal.

When a seller is concerned about an appraisal, it means they are worried that the property may not be appraised at the agreed upon value. In this scenario, waiving the appraisal is the best option for a buyer to address this need when structuring the offer. Option A, allowing an escalation clause, may not guarantee that the appraisal will meet the desired value. Option B, offering a quick close, may not assure the seller that the property will appraise at value. Option C, offering full price or more than full price, also does not guarantee that the appraisal will meet expectations. Waiving the appraisal provides the most assurance to the seller that the buyer is committed to purchasing the property at the agreed upon price regardless of the appraisal value. It may also give the buyer a better negotiating position as they are not relying on the appraisal to determine the offer price.