Here’s what happens when your home’s appraisal comes in below its price.
When a home you’re selling has an appraisal that comes in lower than its sale price, what happens? When you accept an offer on your home, the contract typically has an appraisal contingency. This means the bank that is providing the buyer the funds to close on the purchase will order an appraisal to ensure that what the buyer is paying for the home is what they feel the home is worth. In this kind of market where prices keep going up and up, low appraisals aren’t uncommon.
“The buyer has the option of making up the difference in cash.”
When we have a low appraisal come in, here’s what we do:
1. File a rebuttal. We typically try to rebut the comparable sales the appraiser is using to see a change in value.
2. Accept an offer without an appraisal contingency. It’s not the ideal scenario, but more and more people are doing it. Even banks are looking at doing some appraisal waivers on their loans.
If an appraisal comes up short, nobody forces you to sell the home for that price. It just helps you understand what the lender is seeing as your home’s value. The buyer has the option to make up the difference in cash, and in certain markets, they will.
These are just some of the options available to you. If you have any questions for us about appraisals or real estate in general, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.
