What to Do When Your Appraisal Comes in Low – Buyers and Sellers

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When your appraisal comes in low, your buyer’s financing is in perils, and you are more than disappointed and are not quite sure what to do.

There are different reasons the appraisal may have been low such as-

High percentage of distressed properties in the area, which brought comps down.

It may have been an accurate appraisal.

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Let the appraiser know, in writing, all the attributes of the home, such

as home improvements, which have been performed to the property

and enhance the home, increasing its value.

Ask your agent to list comparable sales and how he or she determined

your asking price, as well.

Negotiate a new deal- Each buyer is allowed to challenge a low

appraisal.

Whether you are a buyer or seller, take a

look at what to do when your home

doesn’t appraise-

When the appraisal comes in low, the situation is upsetting for both the

seller and the buyer and many buyers are willing to take less for their

home.

Another option buyers have is to pay the difference between the offer

price and the appraisal amount.

Cancel the contract - Most contracts have a stipulation that allows

buyers to cancel the contract should the appraisal come in low.

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Whether you are a buyer or seller, take a look at what to do when your home

doesn’t appraise-

Challenge the paperwork- The seller’s agent can challenge the paper

work by supporting the list price with facts and figures, such as the

number of square feet in the home, bedrooms, etc. and comparable

comps.

Ask for a second appraisal- If the home does not appraise, the buyer

has the right to request their lender to hire a second appraiser.

Here, the buyer should be sure the appraiser hired has specific

geographical knowledge and experience in the area.

Whether you are a buyer or seller, take a look at what to do when your home

doesn’t appraise-

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While it is disappointing, low ball appraisals can be

challenged.

For the sellers, it is always recommended being

present during the appraisal and have written

documentation to offer the appraisal.

Whether you are a buyer or seller, take a look at what to do when your home

doesn’t appraise-

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