5 Steps to Resolving a Low Appraisal

Here’s a list of everything our team does when an appraisal comes in low.

Whether you’re buying or selling, the odds are that a mortgage is involved. If a mortgage is involved, an appraisal is required. If the appraisal comes in low, it could jeopardize the whole deal.

The appraisal is the bank or lender’s way to ensure they’re lending the right amount of money for the home. When the appraisal value comes in below the agreed-upon sale price, here’s the step-by-step process of how we handle it:

1. Double-check for mistakes. Appraisers are professional, but they’re also human. We’ll check for basic human error or typos first.

2. Challenge the report. We will provide extra comparable sales in hopes that some are taken out and that doing so will push the number up.

There are no guarantees with a different lender, but I’ve seen the strategy work.

3. Negotiate. If the buyer loves the house, they can bring some extra cash to the table. The seller could also lower the price, or they could meet in the middle as well.

4. Try a different lender. If the seller allows it, you can hire another lender and another appraiser to start the process over and get a second opinion. There are no guarantees, but I’ve seen it work.

5. Time to move on. If all else fails, the transaction is canceled and it’s time to move on.

If you have any questions for me about low 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.