Despite the growing evidence the real estate market is on the upswing, within one week I heard about two sales in our office coming in with low appraisals. Any time a lender is used in the purchase, it involves an appraisal. The appraisal is how the lender ensures the size of the loan doesn’t exceed the value of the house used for collateral. Before throwing in the towel, here are some moves that may keep the sale alive.
- Buyer requests a review of the appraisal or a second appraisal. This is a long shot as the lender will need a compelling reason to doubt the appraisal. It’s worth combing through the appraisal for any missing information on upgrades, updated systems, added rooms, etc. Make sure the comps used match the property.
- Seller and buyer split the difference – buyer adds cash and seller reduces the price.
- Buyer makes up the difference if they have enough cash on hand.
- Seller reduces the purchase price to meet the appraised value.
It’s a difficult and trying time. Assess the facts, leave emotions aside and listen to your agent’s advice. Contact me if you want to work with a REALTOR® who knows how to problem solve your way to success. 603-526-4116, email@example.com, www.donnaforest.com