Purchasing a home is an exciting milestone, but there can be challenges along the way. One such challenge is overcoming a poor appraisal. The transaction can be complicated if an appraisal comes in less than the agreed-upon purchase price. However, provided with the proper information and strategy, you can deal with this situation efficiently and come to an appropriate outcome.
Understanding the Appraisal Process
Ask your lender to explain the appraisal process. A licensed appraiser is hired to provide their opinion of a property’s value, a.k.a. an appraisal. They take into account everything from the state of the property, its location, similar sales, and market trends. You’ll have a better understanding of the causes of a low appraisal and how to address them when you understand how the process works.
Take a look at the Appraisal Report
Get a copy of the appraisal report, and carefully read through it. Search for any errors or discrepancies that might have caused the poor valuation. Verify that the appraiser correctly took into consideration all significant improvements and features of the property.
Reopen discussions with the Seller
Renegotiating the purchase price with the seller may be an option, depending on the specifics. To support your request for a reduced price, include the appraisal report and any supporting information. Some sellers can be open to making a price adjustment in order to maintain the agreement. During this period, negotiation abilities, persistence, and open communication are important.
Seek Advice From Your Real Estate Agent:
Ask your real estate agent for their advice. Talk to Becky McNeer about the low appraisal and determine how it might affect the purchase jointly. She can offer suggestions based on their knowledge, comparable properties, suggest different approaches, and, if necessary, negotiate with the listing agent.
