Navigating a Low Appraisal: Strategies Every Seller Should Know
Here are some options for those who are facing a low appraisal.
So, your home appraisal has come in lower than expected. It's not the end of the road – in fact, you've got several options to consider. Let's explore what sellers can do when faced with a low appraisal.
Despite prevailing interest rates and a potential pool of buyers, the current real estate market has its nuances. Appraisers rely on social comps rather than the current active comps, creating room for negotiation. Here's a step-by-step guide on how to handle a low appraisal:
1. Consult your trusted real estate agent. The first and most crucial step is to reach out to your trusted real estate agent. Discuss the situation with them and examine the recent comparables (comps). In today's market, focus on the last 90 days rather than 180 days. Evaluate whether the home is priced appropriately.
"Facing a low appraisal doesn't mean all is lost."
2. Consider paying the difference. If you're the buyer and believe the home is worth the difference, you have the option to pay the shortfall out of pocket. This can be a strategic move if you're truly committed to the property and see its long-term value.
3. Negotiate with the seller. Alternatively, you can initiate a negotiation with the seller. Propose adjusting the selling price based on the recent comps. If you're motivated to sell your home and recognize that it's overpriced compared to the market, a price adjustment could be the key to a successful sale.
Facing a low appraisal doesn't mean all is lost. If you find yourself in this situation, don't hesitate to give us a call. We'd be more than happy to delve into the details of your specific case and guide you through the process. We look forward to assisting you on your real estate journey.