Low Real Estate Appraisal? Here’s What To Do
As the real estate market continues to grow, more home buyers and sellers are coming across a common issue: An appraisal that is too low! After all, valuations must be based on recent comparable sales, or "comps," and in some cases the rising rate of home sales does not match the rates of homes sold previously. In this article, I'll cover what to do if you get a low appraisal. But first, you need to ask why? Why is the appraisal lower than your expectations? This may have occured because as home rates continue to recover from the housing crisis of
Can You Negotiate The Appraised Value?
The thrill of negotiating or bargaining a sales price appeals to many of us. Once, on a vacation with my family in Barbados, we spent time bargaining with local salesmen on antiques. This was, of course, a big part of the fun. When it comes to appraisals, I've heard people ask if there is any room for negotiating, as in when a home sells and the seller and buyer negotiate certain terms. The short answer is not really, but here are some options for the longer answer: If the home buyer and seller agree on a price, can the appraiser appraise it lower or higher
Should A Cash Buyer Get An Appraisal?
We received a call from a prospective client who asked about whether or not an appraisal was needed if she were a cash buyer. She went on to say that the price she was quoted by the homeowner seemed reasonable since her friend had purchased a house nearby for just about the same amount. However, she stated that she had not seen her friend's home yet and the square footage and number of rooms could not be determined. This means that her friend's home cannot be used as a valid comparable. Now, whether someone paying for their home with cash
Low Appraisal? Here Is What To Do
Several real estate appraisers have mentioned that foreclosures and short sales have created a new price structure that includes average home sales prices and distress sales. This means that homes may have been appraised at a lower value because the "comps" in the area are low as well. So what should a homeowner do if the valuation is too low? Appraise First, Set the Sales Price Second Get an appraisal before you list the home for sale, this way you can take steps to raise the value if the price falls short of your expectations. Get a Copy of the Appraisal
