How much appraisal-gap risk would you accept before making this offer?

[bikesAndEcho]

I want the offer to be competitive without taking responsibility for an unlimited valuation shortfall. The seller is looking for something near ₩1,697,000,000, while the strongest completed comparables may not support bids at that level.

My current preference is a staged offer: keep the valuation and inspection protections, but promise to cover no more than ₩6,900,000 of any appraisal gap. If the lender’s likely valuation or our financing margin cannot support that, I would lower the price instead. Before the response deadline, I need to establish how much will be financed, how similar the completed sales really are, what happens to the deposit if valuation is low, and whether the seller values certainty enough to accept a capped gap.

 

[emery_lending]

I would cap the gap at ₩6,900,000 rather than waive the valuation condition entirely. That gives the seller a defined benefit without turning every won of a low appraisal into your problem. Before offering, make sure the financing proof matches the headline price and ask what happens to your deposit if the valuation is low and the parties cannot renegotiate.

 

[sailsAndQuill]

How much of the ₩1,697,000,000 is financed, and has the lender indicated what valuation it can support? The same gap means very different risk depending on the loan structure. I would also want to know whether the completed comparables are genuinely similar in condition, size and timing, rather than merely the closest available sales.

 

[writesAndLedger]

I would take the opposite approach: keep the full valuation condition and make the strongest headline offer you can actually support. A ₩6,900,000 cap may not distinguish the bid much at this price, yet it still adds exposure. If the seller rejects a properly financed offer because another buyer accepts unlimited appraisal risk, letting that buyer win may be the sensible outcome.

 

[DaanGale]

Seller motivation matters here. If certainty and timing are more important than squeezing out the last amount, strong financing proof, a clear response deadline and a clean process may carry more weight than a larger appraisal promise. Ask whether the seller needs a particular completion schedule. I would not weaken inspection protection merely to compensate for keeping the valuation condition.

 

[lookTheRiver]

Before answering, I would put three numbers in writing: the most cash available for a valuation gap, the maximum total cash needed at completion, and the deposit potentially exposed under each version of the offer. Then decide in advance whether repair credits would reduce the amount you can cover. Otherwise an inspection issue and a low appraisal could consume the same limited cash twice.

 

[lookTheRiver]

One caveat to my previous point: do not assume repair credits will solve an appraisal problem. Their treatment may depend on the contract, lender and local practice. Given the deadline, ask the relevant local professionals to explain the deposit consequences and financing mechanics for each option, then submit only the version that still works under a low valuation and necessary repairs.