There’s much to consider when selling a home, and home appraisal is one of the most crucial parts of the process. It’s a professional’s opinion of a home’s value based on its condition, location, and other factors. However, what do you do when the home appraisal comes in low? This scenario is a common fear among homebuyers, and it could negatively impact the sale process. But don’t fret; there are things you can do to address this issue. In this post, we’ll discuss what you need to know and what to do when your home appraisal comes in low.
Challenge an Incorrect Appraisal with a Reconsideration of Value:
One of the easiest and most straightforward things you can do is challenge an incorrect home appraisal with a reconsideration of value. You can file this if you think that the appraiser made some mistakes, like not considering some unique features or amenities of your home. You and your real estate agent need to examine the appraisal critically and identify any areas of concern, such as errors in the home’s location, condition, or comparisons with similar properties in the area. Then, you can request a reconsideration of value based on the errors or inconsistencies identified.
Request a New Home Appraisal:
If you have solid grounds to support your claim that the first appraisal was inaccurate, you can proceed with requesting a new home appraisal. A different appraiser from the lender would take a fresh look at your property’s value, putting into consideration all the factors that could affect its price. This approach would require you or the buyer to pay for the appraisal again, but it would give you a better chance of getting a more accurate valuation of your home.
Negotiate with the Buyer to Save the Deal:
You can also negotiate with the buyer to find common ground and save the deal, especially if you think that it’s a fair assessment and the buyer still wants to purchase your home. You have a few options to do this. For instance, you could suggest the buyer pay a higher down payment to cover the discrepancy or pay for private mortgage insurance. You or your real estate agent could also suggest reducing the price to the appraised value or even splitting the difference between the appraisal and the asking price.
Get an Independent Appraiser:
If you feel that both the first appraisal and the reconsideration of value were inconsistent, you can decide to get your appraisal by an independent appraiser. Independent appraisers are professionals who don’t have any tie-ups with banks or lenders, and thus, they’re more impartial in their assessments. An independent appraisal may cost you some money, but it will give you more solid data on your home’s value.
In conclusion, a home appraisal can be critical to the home sale process, and a low appraisal can throw a wrench in your plans. However, it’s not the end of the world. There are steps you can take to challenge an incorrect appraisal or find a way to negotiate the discrepancy. Work closely with your real estate agent to review the appraisal report and determine which course of action is best for you. We hope that the tips discussed in this post will help you navigate through the home appraisal process and ensure a successful home sale.
