When might a buyer be able to negotiate a lower purchase price for a property?

A buyer may be able to negotiate a lower purchase price for a property if the appraisal comes in lower than expected because the appraisal value provides a benchmark for the property's market value. If a property is appraised at a lower value than the agreed-upon purchase price, the buyer can present this information to the seller as a basis for renegotiating the price. Lenders typically base their financing on the appraised value, and a low appraisal might lead to issues with obtaining the necessary loan amount, making it a compelling point for negotiation.

In contrast, negotiating after closing is not feasible since the purchase agreement is already finalized. If a seller has multiple offers, they are generally in a strong position to negotiate upward rather than downward, and if the seller is not motivated, they may be less inclined to lower the price regardless of the circumstances.