What to Do If Your Appraisal Comes Back Low
One of the most important parts of buying or selling a home is the appraisal—it tells you and the bank how much the property is worth, and it usually determines how much the bank is willing to loan the buyer for a mortgage. This is because the bank doesn’t want to lend more money to the buyer than the property itself is worth. So what do you do when the appraisal comes back too low? Keep reading to find out.
If you need a home appraisal in MD, VA, or DC, contact the experts at Coakley Realty today by calling 301-340-8700!
What the SELLER Can Do If the Appraisal Is Too Low
As the seller, you have more options about what you can do if the appraisal comes back lower than you were hoping. Some of your options include:
- Re-negotiating the price – If the appraisal comes back low, but close to the listing price, you can simply lower or re-negotiate the price with the buyer so that it is agreeable for everyone—including the bank.
- Requesting a second appraisal – Of course, you may also order a second appraisal if you believe the first one was inaccurate due to the inexperience of the appraiser or other factors. It’s possible a second home appraisal could turn out a different value for the property.
- Improving the home – If the appraisal comes back low, there may be things you can do around the house that would improve it, including home maintenance, repainting, and repairs.
Unfortunately, if you cannot lower the price or improve the home, and the appraisal still comes back lower than you were hoping, your only option may be to take the home off the market. Otherwise, you have to hope that someone will love the house enough to pay the difference out of pocket.
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What the BUYER Can Do If the Appraisal Is Too Low
As the buyer, you need the appraisal to match the home price, or else the bank isn’t going to approve your loan. So what can you do when the appraisal comes back too low?
- Re-negotiate the price – If the seller is open to it, the easiest option is to re-negotiate the sale price of the house. This is particularly effective if the appraisal comes back just slightly lower than the listing price.
- Request a second appraisal – You are also able to request a second appraisal if you believe the first wasn’t as accurate as it should have been.
If the seller isn’t willing to lower the price and a second appraisal doesn’t come back with a higher amount, your only options are to pay the difference out of pocket or pull out of the deal.
Who to Call for Your Appraisal
If you need to schedule an appraisal for your home or if you want a second opinion on the value of the property, give the experts at Coakley Realty a call. Our fully trained and experienced appraisers have been providing exceptional service to the residents of Maryland, Virginia, and Washington, DC since 1989. Let us put our years of experience to work for you—call today!
Contact us online or by phone at 301-340-8700 to request your appraisal!