“How Often Do Appraisals Come in Low”
Q. What are some of the options a seller can do when an appraisal comes in low
o Depends on when and how they get notified
o If the appraiser notifies the listing agent its low they will often provide an opportunity for the listing agent to support in the price. It may or may not change the appraisers mind though.
o We typically meet the appraiser and provide them with the best substantiation of price we can and tell them about buyer demand like # of offers, where the offers came in.
Q. Have you seen some appraisals update their price?
o Yes, however it is pretty rare
o For govt appraisal like VA it could take months to challenge the appraisal
Q. We are here talking with Barb Schlinker of Your Home Sold Guaranteed Realty, you can reach Barb at 719 301 3900 or visit www.BarbHasTheBuyers.com.
Barb: What are the options if an appraisal comes in low?
· Do nothing. I’ve seen this happen if buyer was putting enough down it did not matter
· High demand properties, buyer can come up with difference in cash
· Buyer and seller can negotiate the difference
· Seller could lower the price to the appraised amount☹
Q. Why would they have to lower their price?
· If that is the only option, most commonly with VA 100% financing, because the buyers would have to pay the full difference to get the loan and
· VA appraisal sticks with the house for 6 months.
· Although for other types of loans I have seen buyers go get a new lender and appraiser to get the house.
· Example: $400K appraisal came in at $390K buyer would have to bring an extra $10K to closing. Most do not have the difference in cash.
Q. What about when it comes to negotiating on the appraisal?
o Appraisers sometimes as for repairs for safety issues, trip hazards, for VA peeling paint, missing outlet covers, stair rails, broken windows.
o If it was a high demand property, I have insisted the buyer make those repairs, usually they will.
o As far as price, it depends on the situation. But we try to negotiate for our sellers if we can.
If you would like to know what to do and what not to do to get your home ready for sale...
you can reach Barb Schlinker of Your Home Sold Guaranteed Realty at 719 301 3900 or visit www.BarbHasTheBuyers.com.