I am selling my home in Colorado. The buyer is paying the full asking price with $47,000 down.

The answer to this question is complicated by your statement “My real estate agent is also the buyers agent.” The term for an agent representing both parties to a transaction is dual agency. Dual agency presents all sorts of problems relating to disclosure. For example a buyer tells some “confidential” information to the agent. Now that agent is in a pickle. How do they tell the seller this information if they represent the buyer? Wait…but they have to since they represent the seller also…but that means they are not representing the buyer’s best interest…and on and on.

So let’s set aside the problems of dual agency and just look at the relevance of the appraised value. Let’s say that the property appraises for more than the contract sales price. Check your contract. Is there a provision that says you are not obligated to sell the property to the buyer if the property appraised over the sales price or that you get to renegotiate the sales price subject to the appraised value? It is highly unlikely that your agreement with the buyer includes a provision of this type. If it doesn’t, what difference does it make what the property appraised for as long as it appraised for enough for the buyer to obtain their loan?

The only reason you might want to know is to check if your agent did or did not do a reasonable job in helping you list the property at a reasonable price. But even knowing what the property appraised for will not give you a definite answer to that question. What if your agent’s opinion of value is more accurate than the appraiser’s?

Often appraised values differ from the sales price for more and for less. Low appraisals cause problems due to the fact that the buyer may not be able to get the loan needed to complete the transaction. High appraisals have no effect on the ability for the buyer to qualify for the loan. There is at least one very rare exception to this…the property appraises for so much more than the sales price that is is a “red flag” indicating possible mortgage fraud.

So unless you suspect fraud or some other malfeasance the appraised value is probably irrelevant to your legal obligations to the buyer as long as the property appraised for the sales price or for more than the sales price. Check your contract provisions for any effects the appraised value have on your legal obligations or ask your real estate attorney.

By the way…congrats for selling your property at your full asking price. Most sellers in today’s market do not often get their full asking price.