What if the Appraised Value is Below the Contract Price?



Watch on your mobile device >>

Appraisers are having a difficult time because of the dramatic market shifts. An appraisal is a backward looking document using information from sales dating one to six months ago. Problems arise when appreciation changes. From February to March of this year there was a 6% increase in single home values; that is a huge adjustment to make in an appraisal.

We have three tips to help you avoid a low appraisal
  1. Provide the appraiser with the comps you’ve based your sales price on
  2. Meet with the appraiser at the property and go over the comps with them
  3. Find a buyer with a little extra cash in their pockets

If the appraisal does come up low, though, we have four ways to resolve the difference.
  1. The buyer does have the right to cancel the contract
  2. The seller can agree to sell the home for the lower appraisal value
  3. Buyers can come to the table with some extra cash
  4. The buyer and seller can agree to an equitable compromise

If you have any questions about your appraisal please call us at 480.621.6828 or email us at craig@omnires.net or stacey@omnires.net

No comments :

Post a Comment