Here’s our advice for dealing with a low appraisal situation.
As we start the new year, the San Diego market is projected to appreciate by about 10% this year. Knowing that appraisal issues during sales are bound to pop up, I thought it would be a great time to address what your options are if you are buying or selling a home and have to deal with an appraisal that comes in below the price.
The first thing to keep in mind with a low appraisal is that it can be adjusted. It’s not final. After asking for a copy of the appraisal, have your agent go through it to determine if there was any human error involved.
If the numbers are all correct, the next step is having your agent prepare a list of every dollar that you’ve put into your home, as well as a complete list of comparable properties that you’ve used to price yours. Your agent will package up this information in an argument for why you believe the appraisal should be higher. If you have any other offers that were close in price to the accepted offer, that always helps as well.
If this appeal package doesn’t yield a positive result for you, your final step is to hit the renegotiation table with the buyer. Many aren’t willing to pay over a home’s appraised value because it means they will have to come in with cash to cover the difference. In a hot market like the one we have today, however, it’s not uncommon to find a buyer who is willing to go the extra mile to get your home.
If you have any questions about appraisals or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.