You have found the home of your and you are ready to sell your existing home in order to purchase it. You’ve submitted an offer and have had inspections performed on the new home, any small issues that may have been discovered during the inspection process are being taken care of. There’s only one thing standing in the way of you and your new home, the appraisal on your existing home.
Experts in the market have reported that appraisals have been the leading cause in deals being cancelled. Receiving a low appraisal can lead to sales being delayed or even cancelled as a result. The leading cause behind this is because the seller was expecting the value of their existing home to come in higher than the appraisal they were given. Not all of the contracts where a low appraisal was issued were canceled. Some sellers were willing to renegotiate a lower price, but some sellers were not willing to make that sacrifice.
As a seller there are some things that you can do to challenge a low appraisal. One of the first things any seller who receives a low appraisal should do is to thoroughly look over the appraisal for errors. Make sure that the appraiser used the correct amount of square footage of your home and the property. There may have also been mistakes on the number of rooms and some improvements that you have made over the years may not have been properly recorded. These are all mistakes that can lead to a low appraisal.
If you have carefully looked over the appraisal and cannot find any errors that may have affected the value of your home, your next option is to contact the appraiser and ask if they can reconsider their evaluation. The appraiser may not have used the proper types of comparison properties when determining the value of your home. For instance, if they based their value on foreclosed and short sales that have been reported in your neighborhood, it could have greatly influenced your appraisal.
Another option that sellers have is to pay for their own appraisal. If the appraised value of your home comes back higher you have the right to contest the value of the first appraisal. For many sellers who are not satisfied with the appraised value of their home and have not had any luck communicating with the original appraiser, this may be the best solution.
There are many ways that you, as a seller can deal with a low appraisal. Before allowing the low appraisals to stop you from selling your home exercise all of your available options first. A low appraisal doesn’t have to mean the end of a deal, it is just a sticking point that can often be handled in a timely manner.