Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation
We’re currently in a strong seller’s market, which means we have an appreciating market happening. The number one challenge we’re experiencing for seller’s clients during this period is receiving appraisals lower than the agreed-upon purchase price. When this happens, we have three tips advising them on how to deal with it:
We’re currently in a strong seller’s market, which means we have an appreciating market happening. The number one challenge we’re experiencing for seller’s clients during this period is receiving appraisals lower than the agreed-upon purchase price. When this happens, we have three tips advising them on how to deal with it:
- Consider taking less of an offer if the offer is cash. In a seller’s market, it’s not uncommon to receive multiple offers. If any of those offers involve cash, consider taking it even if it’s less. Since appraisals are loan-based, cash negates the need for even having them.
- Remove the appraisal contingency out of the offer. Although our contract states that the home must appraise for at least the purchase price, you can remove the appraisal contingency. Therefore in the event that the property doesn’t appraise, the buyer makes up the difference between the purchase price and the appraisal price in cash.
- Know that you do not have to cancel the contract if the home does not appraise. This is very important. If you haven’t done the first two, you can go back and negotiate with the buyer.“
If your home doesn’t appraise, you”
can always go back and negotiate
with the buyer.
As always, if you have any further questions feel free to reach out to us by calling or sending an email.
