Real Estate Licensing New Jersey Real Estate Salesperson Exam - Topic 3 Question 14 Discussion

Actual exam question for Real Estate Licensing's New Jersey Real Estate Salesperson exam

Question #: 14
Topic #: 3

[All New Jersey Real Estate Salesperson Questions]

A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?

ADo nothing, because the seller must sell the property at the appraised value.

BMake up the difference between the contract price and appraised value in cash.

CHire an appraiser and see if a second appraisal yields a higher appraised value.

DSeek an FHA lender who will automatically make up the difference between the contract price and the appraised value.

Show Suggested Answer

Suggested Answer: B

VA loans include an escape clause: buyers cannot be forced to purchase a home for more than its appraised value. However, if the buyer still wants the property, they can:

Pay the contract price, but must cover any amount above the VA appraised value in cash, since the VA will only guarantee the appraised portion.

Sellers are not forced to lower their price to the appraisal amount.

An FHA loan will not automatically cover the shortfall.

Thus, the best option is B.

by Stevie at May 04, 2026, 12:06 AM

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Lynna

17 days ago

I practiced a similar question where a buyer had to deal with a low appraisal. I think getting a second appraisal could be a good idea, but it might not guarantee anything.

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Tandra

22 days ago

I think the best option might be to make up the difference in cash, but I’m not entirely sure if that’s the only way to go about it.

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Annice

27 days ago

I remember something about VA loans and appraisals, but I'm not sure if the seller has to sell at the appraised value.

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