A couple weeks back I posted about a real estate deal that was falling apart due to a low appraisal of the property.  Well, this has been worked through and terms have been agreed on to close the deal in a week.
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If you missed the first post - [Negotiating Price after Signed Contract](https://steemit.com/scaredycatguide/@scaredycatguide/scaredycatguide-to-real-estate-negotiating-price-after-the-contract-is-already-signed)
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https://i.imgsafe.org/e4a2719508.jpg

## Agreed Terms

So the issue at  hand was the appraisal came in nearly 10k below the contract price.  The seller challenge the appraisal (and I don't blame them because that appraisal is indeed way lighter than it should be) but after reviewing the realtor's comps the appraiser left his estimate unchanged (which also amazed me because there are several comps above 100k)

### Available Options

With the appraisal unchanged the options were:
+ Withdraw from the contract per financing contingency
+ Bring the difference in appraisal price and sales price to closing (read: larger down payment)
+ Negotiate a reduced price

I figured walking away from the deal was going to be the likely result as the seller has no desire to come off her price.  She had received multiple full price offers so motivation to reduce was little.

However, given I had gone directly to the listing agent I knew he would likely cut his commission some to assist her in taking a lower price and close as opposed to going through the whole process again and waiting another 30 or more days to sell the property.

### The Magic Number

I needed to figure out what that magic number was.  Based on the price of the property I figured the agent would cut 1k off his commission for her.   I did not have another 10K to bring to closing, but I did have a chunk of money to work with and the deal looked alot better if I could get a few grand off.

So I pitched 107k.  With a 109,900 price - assuming the realtor cut his commission 1k then it would only be a $1,900 to her.

My thought was if she isn't willing to close the deal eating less than 2k than she is not willing to close the deal for any number under 109,900.
 
## Conclusion

The realtor got back to me a couple days later with the contract addendum for the 107k purchase price and we are set to close in about a week.

This worked out well as I'm getting the property cheaper, but also borrowing less. 

After plugging the new numbers into my property calculator (which you can download for free at http://scaredycatguide.com/) I saw that my monthly cash flow on the property will be higher, which is my main focus currently - cash flow.   

It does require me to bring my cash to closing, thus reducing my cash on cash return, but it's still above my minimum threshold of return so it works!

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Regards, 
https://steemitimages.com/0x0/https://steemitimages.com/0x0/https://steemitimages.com/0x0/https://i.imgsafe.org/4f26ea823b.jpg
Thanks for the pic [pixabay](https://pixabay.com/en/man-silhouette-shaking-hands-875702/)
Disclaimer: Info in this post is for educational purposes only