Few things in the home buying process
are more frustrating than having your
offer accepted, only to have the appraisal
fall below your offer. But all is not lost!
If the appraisal comes in below your offer,
there are several tactics and strategies
that can lead to a happy solution.
Get a second opinion: There’s no need
to take the appraiser’s estimate as fact.
You can pursue a value appeal, or you
can discuss a second appraisal with your
prospective lender. Sometimes you can
even get the seller to pay for the second
appraisal, because they will be motivated
to complete the sale. Your real estate
professional should be able to help you
through the process of an appeal or a
Renegotiate for a lower price: Unless
the market is extremely hot, there’s a
good chance the seller can be talked town
to the appraised value. Sellers often prefer
to complete the deal, rather than putting
the property back on the market.
If all else fails, resist the urge to pay
more: Sure, paying more in cash to cover
the difference between the loan amount
and the agreed upon sale price is tempting.
Buying a home is an emotional experience,
and you may think that this particular home
is the only one that you’ll be satisfied with.
Take a step back and consider searching
for another property.