Here’s what buyers and sellers need to know about appraisals.
“What’s going on with appraisals?” I’ve touched on this topic before, but our market is changing, so I thought it would be a good time to discuss it again. Even in our shifting market, many homes are still selling for more than their appraised value. What happens in this situation?
When someone makes a financed offer on a home, their lender will order an appraisal of the property. The appraiser will assess the property independently from the buyer or seller. Lenders will only lend up to the appraised value, so the buyer and seller are in a dilemma if the appraisal comes in low.
“Appraisal gap coverage can ensure your sale goes smoothly.”
Appraisers don’t only look at home values. They also check the condition of a home. If the property needs major repairs, the appraiser will include that in their report.
If an appraisal comes in low, what can you do? The seller has the option to reduce their price, but the buyer can also bring extra money to the table. Work with a great agent so that you can negotiate appraisal gap coverage and ensure your sale goes smoothly.
If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!
