Don’t Panic! Here’s How To Triumph Over a Low Home Appraisal

By Kelly Johnson

Kelly sets a business plan at the end of each year for the following year. He commits to that business plan and requests that His Team assists. He is very goal driven, yet always makes time to be with his family, for they are the reason that he maintains high standards for himself and his business.

Despite rising interest rates shrinking your potential pool of buyers, now is still a great time to sell your home. Home prices are still increasing, just not as quickly as they were over the last couple of years. However, rising home values can also present a challenge for sellers. If your buyer’s appraiser values your home at less than you want to sell it for, what can you do? 

If this situation arises, consult your real estate agent to ensure your home is priced appropriately for the market. Keep in mind that appraisers typically don’t adjust their valuations after submission to the bank.

You can also try to contend the appraised value. This involves providing the appraiser with well-researched comparable properties for consideration. While appraisers won’t often adjust their valuation, offering strong comparables may possibly prompt them to reexamine the value.

“If there’s a gap between the purchase price and the appraised value, negotiation becomes necessary.”

Negotiation plays a crucial role in this process, just like in other aspects of a real estate transaction. If there’s a gap between the purchase price and the appraised value, negotiation becomes necessary.

In the case of a discrepancy, where, for example, the appraisal falls $5,000 short of the purchase price, you can approach the buyer and request that they bridge the difference. While this negotiation doesn’t happen frequently, motivated buyers may be willing to negotiate, possibly meeting you halfway. However, if you can’t secure any negotiation with the buyer, you may have to accept the loss and move on or consider taking your property off the market.

I’m here to provide information and support in your real estate endeavors. Feel free to call or email me for a second opinion or assistance. My direct cell phone number is (317) 908-9614. Your success in the market is my priority.