If you’re in the process of selling or buying a property, there’s always a possibility of the appraisal coming in lower than the asking price. But what happens next? It’s natural to be concerned about what this could mean, but there are steps you can take to navigate this situation. Here’s what you should do if your appraisal comes in less than the asking price:
Review the appraisal report: Ask for a detailed copy of the appraisal report from the lender. Ensure that you review it thoroughly to find out why the appraiser valued the property at a lower price.
Challenge the appraisal: Once you have reviewed the appraisal report, if you find any errors or discrepancies, you can always challenge the appraisal. Reach out to the appraiser and lender with facts about the property that could have been overlooked, such as recent upgrades or additions.
Negotiate with the buyer/seller: If the appraisal comes in lower than the asking price, it might be up to the buyer or seller to decide how to proceed. If you’re the seller, you can renegotiate the price with the buyer or even find ways to sweeten the deal, such as covering closing costs or offering additional repairs or upgrades to the property.
Consider paying the difference: If the options above don’t work for either party, the buyer can pay the remaining difference between the appraised value and the sale price in cash – a scenario that you hoped wouldn’t happen.
While getting an appraisal that is lower than the sale price may be disappointing, it is not always the end of the world. By following these steps, you can find ways to make the transaction work for both parties and still get the deal done.
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