Welcome to the LVHomesGroup.com Blog

2020-02-09 10:00:12
3 Tips to Combat a Low Appraisal

Low Appraisal

After all the time you spent finding the ideal home, negotiating back and forth with the seller on the price and terms, both you and the seller may be stunned when the appraisal comes in below the purchase agreement's price.

While low appraisals aren’t as common as they were as we rose from the ashes of a crashed-and-burned housing market, they do happen. Take a deep breath and dive into the following tips to salvage the purchase of your home.

1. Lower the Price

The quickest and easiest way to make sure that the sale goes through is to renegotiate the purchase agreement with a lower sales price to reflect the appraisal value. If there are incentives included in the sales price (appliances, furniture, etc.) perhaps you can take the sting out of a lower sales price by removing these from inclusion in the sale. This way, both you and the seller compromise.

2. Increase the Down Payment

If you truly love the home, and the seller refuses to lower the price, consider paying the difference between the purchase price and what the bank will lend. Increasing the down payment will bring the

sales price in line with the appraised value.

There is a danger in this though. Paying more up front will create negative equity in the home (the amount of the loan plus the larger down payment is greater than the appraised value of the property) and the loan may not be approved.

 

3. Challenge the Appraisal:

Sellers may be able to help the cause, particularly if they have inside information on a recent sale in

their neighborhood, such as a death or divorce, something that would explain lower-than-normal sales

price. Also, if there are pending sales in the area, and the seller or either agent happen to be privy to what the final sales price is, that could be go a long way in helping the appraiser to reconsider.

Remember, the appraiser most likely doesn’t live in the neighborhood; he or she may not know the area very well and will most likely welcome your “insider” input.

A low appraisal doesn't have to be a deal killer. Before you decide to walk away, be sure you've

done all you can to remedy the problem and get the sale back on track.

 
Blog Archive
2020-02-09 10:00:12
3 Tips to Combat a Low Appraisal

2020-02-03 16:26:39
The Anatomy of a Mortgage Payment

2020-01-02 08:39:25
HOA? Beware the Rules and Regulations!

2019-12-21 10:16:47
4 Tips to Close Quickly on a Home Purchase

2019-11-23 21:31:03
Is This a Good Time to Buy a Home?

2019-11-19 19:32:31
Selling Your First Home

2019-11-13 08:45:31
Alternatives to Granite Countertops

2019-11-07 09:44:04
3 Tips for Attending Open Houses

2019-06-30 12:05:17
Is a Smart Home in your Future?

2019-06-29 19:51:05
What do I need to Qualify for a Home Loan

2019-05-27 09:26:15
What do I need to Qualify?

2019-04-15 22:24:13
Is a Bigger House Really Better?

2018-12-30 09:28:29
What to Look for in the HOA Documents

2018-12-09 11:41:50
Selling During The Holidays

2018-11-22 10:41:16
Top 3 Tips for House Hunting Online

2018-09-28 10:58:27
3 Tips for Attending Open Houses

2018-07-04 16:10:52
The Ultimate Guide to Title Insurance

2018-05-27 15:11:20
Everything you need to Know about Relocating

2018-05-16 18:33:26
Easy Repairs to do when Preparing to Sell Your Home

2018-05-05 08:39:25
2 Things to Know about Home Inspections

2018-04-20 20:10:17
5 CRITERIA FOR PRICING A HOME

2018-04-14 17:08:39
Buying a Foreclosure

2018-04-05 16:44:24
Comparing New Construction vs Resale

2018-03-26 18:50:29
Las Vegas Homes : A Step by Step Guide to Buying

2018-03-17 20:34:15
3 Things to Know about Buying New Construction

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.