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

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?
B) Make up the difference between the contract price and appraised value in cash.
A) Do nothing, because the seller must sell the property at the appraised value.
C) Hire an appraiser and see if a second appraisal yields a higher appraised value.
D) Seek an FHA lender who will automatically make up the difference between the contract price and the appraised value.

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?

Show Suggested Answer Hide 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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Nina
2 hours ago
C sounds risky. What if the second appraisal is still low?
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Ressie
5 days ago
Actually, A is a common misconception. Sellers aren't obligated to sell at appraised value.
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Kayleigh
10 days ago
B is the best option if they really want the house.
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Andree
16 days ago
I don’t think switching to an FHA lender is a valid option here. I remember that FHA loans have different rules, but I can't recall the specifics.
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Lynna
2 months 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
2 months 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.
upvoted 0 times
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Annice
2 months ago
I remember something about VA loans and appraisals, but I'm not sure if the seller has to sell at the appraised value.
upvoted 0 times
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