FAQs Friday – Appraisals
What happens if the house I’m buying appraises under the offer price?
you have several options:
look for errors in the appraisal
The market moves faster than appraisals do, so examine the report, double-check the basic info (sq footage, Number of beds|baths, etc), and what features the appraiser included. Does it have energy-efficient appliances? A new fence? Most appraisers will want to fix mistakes.
challenge it with a reconsideration of value
If you & your agent believe it was erroneous, you can challenge the appraisal for the following reasons:
- Inadequate CMA (were the comps recent? did they miss any?)
- Disregard of special financing or concessions
- Incorrect finished square footage
- Inadequate inspection
Request a new home appraisal
You can ask your lender for another inspection at your expense.
Negotiate with the seller to save the deal
- Your agent can negotiate with the sellers’ agent to bring the price down to the appraised value.
- You can increase your down payment to cover the difference between the appraised value and the contract price.
- You can make up some of the difference by asking the seller to pay your closing costs.
Discuss your options with us, or with your agent to see which option works for your situation.
