“What to do with a low appraisal”
Along with skyrocketing home prices comes the potential for low home appraisals. Because an appraisal is not a market valuation, appraised values can be inconsistent with market prices. Lenders use the appraised home value to determine your loan-to-value (LTV) ratio, which determines how much of a home’s value the lender will finance. A low appraisal means that either the seller will need to lower the sale price to the appraised value, or the buyer needs to come up with the difference between the sale price and appraised price in cash (make a bigger down payment). Another option is to rebut the appraisal or order a new one, but there’s no guarantee that the home’s appraised value will change.
We all need a dose of reality at times, especially when a substantial gap exists between what sellers think their property should sell for and what market conditions will bear.
If you’re having trouble coming up with a price to put on your home, we suggest you put this crucial step to a successful sale in the hands of an experienced professional. We’re sure our 60 years of real estate experience can’t help but be beneficial to your transaction.
“OUR SUCCESS HAS BEEN BUILT ONE SATISFIED CUSTOMER AT A TIME.”
