What Are Your Options After a Low Appraisal?
As you’re going through the process of selling your home, one big fear you might have is that your home will fail to appraise due to market conditions.
An appraisal is an opinion of value, and the downside to having many homes on the market is that you will have lots of appraisers coming up with different opinions that may not be as accurate as you had hoped. So what can you do if your home doesn’t appraise at the agreed-upon sale price?
The first option you have is to negotiate with the buyer, either bringing down the price to the appraisal value or meeting in the middle. The second option is terminating the contract, provided that you have the correct documentation to allow that. The buyer will also have this opportunity.
The third (and likely best) option is to protest your appraisal. This is where having a good agent comes in handy. The square footage needs to be double-checked, and you must find different comparables that align with what you think the home’s value is.
A lot of these come down to making sure you have an experienced agent who knows the options when an appraisal comes in low and is knowledgeable about the market and your ability to find a solution.
One final item that you need to address is the discussion of what would happen if something happens with your appraisal value. If they wait until the appraisal comes in low, it may be too late to make a contingency plan. It’s better to do that in advance.
If you have any questions, feel free to reach out via phone or email. We look forward to hearing from you soon.