Sometimes appraisals go the wrong way. That’s usually bad news if you’re all ready to move in.
Today I talk about why an appraisal can be an issue and ways to fix the situation if an appraisal comes in too low when trying to buy a home.
I explain more in today’s video:
There are a couple things you have to consider when having purchase appraisal problems. How was that purchase price determined in the first place? Did the seller set their own value based on a old appraisal or did the realtor do an accurate market evaluation on the property? A good market evaluation on a home will use comparable property sales within a small radius from the subject property.
If you’re to a point where you’ve gotten back an appraisal and it doesn’t meet or exceed the sale’s price, you can do a couple things.
- Reduce the purchase price
- Bring more money to the table
I would have the seller reduce the purchase price all day long since every other buyer is going have the same problem on their house. The old saying of “Something is only worth what someone is willing to pay for it” eoes not apply to real estate, unless you have cash.
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