What happens if your listing doesn’t appraise? Saving a transaction after this happens is difficult, but not impossible.
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If a house appraisal comes back at a low value, what can you do?
Imagine you have listed a home on the market for $500,000. After receiving multiple offers, you escalate the price to $525,000 only to later find out that the house couldn’t appraise at that value.
So how do you save a transaction from an unfortunate appraisal? Low appraisals are a difficult hurdle to overcome.
Since the lender won’t give more money than the house is worth, a low appraisal could cause buyers to back out when they realize their offer was too high.
As a real estate professional, I always try to turn these situations into a win-win. I do my best to create a compromise between the buyer and the seller so that the transaction can move forward.
However, this sometimes simply isn’t possible. Certain factors are beyond anyone’s control.
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Low appraisals are a difficult hurdle to overcome.
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Sellers, though, do have options in certain cases. If you are listing in a seller’s market with very little inventory, you have a much better chance of salvaging a transaction after a low appraisal. Appraisal contingencies may be removed if the conditions are right. Cash offers are also possible—but those are very rare.
Sellers trying to list in a buyer’s market are not in such a good position. It will be very difficult to navigate this kind of situation as a seller.
It’s ultimately best to try avoiding a low appraisal in the first place. If the appraisal does come in low, you still need to carefully analyze the appraisal to make sure everything has been accurately assessed.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
