You found the home, the offer was accepted, and then the appraisal comes back lower than the price. It happens, and you have options.
What an appraisal is
When you use a loan, the lender needs an independent opinion of the home's value. The appraiser looks at the condition of the home and compares it with similar homes that sold recently nearby.
Why it can come in low
Recent sales in the area did not support the price.
The market is moving quickly, and the data lags behind.
Updates or features were not captured.
Your options
Ask for a review. If we have better comparable sales, we can submit them to the lender.
Renegotiate the price with the seller.
Split the difference, with the buyer paying some of the gap in cash and the seller lowering the price.
Walk away, if your contract allows it.
How to avoid surprises
Pricing a home correctly from the start is the best protection. I use recent local sales to help buyers and sellers set a number that holds up.
If you have questions about an appraisal, I am happy to walk you through your options.
