As a seller, what do you do if your home’s appraisal comes in low? As hot as our current market is, with many homes selling over the asking price, this is a situation we’re seeing often.
There are three courses of action you can take.
- The first is going through that appraisal with a fine-tooth comb to check whether there are any errors that can be corrected. Appraisers are only human, and they can make mistakes.
- Ask your agent to provide the bank with a list of comparable homes and upgrades you’ve made to your property that might increase its value in their eyes.
- Negotiate with the buyer on how to proceed with the transaction. There is no black and what where. They don’t have to pay you more than the appraised value and you don’t have to accept it. If the appraisal is accurate and you have three options #1 & 2 then you are down to three choices.
- Accept the appraised value.
- Negotiate a different price with the seller (the buyers will need to come up with the cash to cover the difference).
- Just say no and don’t sell it to them. (This doesn’t mean that the next appraisal will be any better).
As always, if you’d like to discuss this subject further or have any real estate questions I can answer, don’t hesitate to reach out to me. I’d love to speak with you.
