If your home’s appraisal came in lower than what you had expected, you have a few options. You can either pay the difference, request another appraisal, or re-negotiate the price. Here are some tips. Then, you’ll be well on your way to selling your home! Follow these tips to get the best deal possible on your home sale.
Pay the difference
When buying a home, you should pay close attention to the appraiser’s value. When a home appraisal comes in lower than the asking price, you will either have to make up the difference or renegotiate with the seller to keep the deal alive. You should also be mindful of the length of time you have to sell your home. Often, sellers are willing to split the difference with the buyer.
If you can afford to pay the difference if your home’s appraisal is lower than you expected, consider seller financing. This option is good if you have extra cash, but you must have enough equity to pay the difference in cash. Seller financing involves a loan to the buyer, either in the form of regular payments or a lump sum. If you plan to use seller financing, get legal advice before you sign any papers.
Request a second appraisal
When your home’s appraisal comes in lower than you expected, you might not have time to get a second one. This happens when an appraiser is completing his or her first appraisal in a neighborhood, and they may get the market vs. home value equation wrong. If your appraisal is too low, your lender may decline your loan application. If this happens, you may want to request a second appraisal before making any final decisions.
If your home’s appraisal comes in below what you expect, your next steps are to ask your lender to get a second appraisal. You should carefully look over the report, looking for any factual errors that may have affected the appraised value of your home. If you find any, request a second appraisal and ask the lender to reconsider. If your lender doesn’t agree, you should consider walking away from the transaction.
Re-negotiate the sale price
If your home’s appraisal comes in lower than expected, don’t panic. There are several ways to renegotiate the sale price. For one, you can demand that the appraiser make an exception for you. Your broker can help you identify key oversights, but it could take a week to get such a request approved. If you don’t have the extra cash, your other option might be to walk away from the deal.
If your home’s appraisal is lower than expected, you’ll need to re-negotiate the sale price. It’s best to avoid paying more than the home’s appraised value. In a buyer’s market, it might be worthwhile to make some concessions and request that the seller lower the price to match the appraised value. If the first buyer walks away before you can negotiate a new price, you might end up receiving a second low appraisal.
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