3 Things to Do If Your House Receives a Low Appraisal

Cash home buyers Atlanta house and magnifying glass for decorative purposes only

Here are 3 things you can do when you get a low appraisal on your Atlanta home. Although you may feel that you have a lot more leverage when selling your house, there are still many barriers that must be cleared to make the transaction a success in 2022.
Let’s examine the top obstacles to your success after getting a low appraisal.

Why is an appraisal important?

First, it is important to understand the nature of appraisals and their impact on our work.

An appraisal involves a thorough review of your house’s features and conditions to determine its market value.
The appraiser considers these features and then looks at current market trends to arrive at an estimated market price.
An appraisal will provide a thorough evaluation of the entire property.

If you are offered an extremely high price by your buyer and receive a low appraisal, it is likely that you will be in a difficult position.
This is because most likely the buyer wants to obtain a mortgage loan.
However, if the appraiser says otherwise, the lender may not approve the loan.

In this scenario, the buyer’s lender might be left with a lower-value property and cannot recoup the costs if the buyer defaults.
This will result in the buyer losing their loan and having no financing. Your home will then be sold.

Read the Appraisal report

Once we have an understanding of the purpose and what an appraisal does, how do we handle a low appraisal?

No matter what the results of your appraisal, you should take the time to read through the entire report.
You should ensure that every detail has been checked to make sure there were no mistakes and that the home was accurately represented.

Although you may not have much case if you think something should be valued differently than what is stated in the report, you can still dispute it if you find glaring errors.

Request a Do Over

If you are not satisfied with the first appraisal, you can request another appraisal.

This route is typically taken when there are concerns about the first appraiser’s qualifications, experience, or competency.
This is where you really want to do everything possible and make sure that every inch of your house is prepared.

Make sure to clean up everything.

Renegotiate

Let’s assume that both appraisal reports are accurate and there is still a substantial value deficit. Where do you go from here?
Their lender won’t approve a loan that exceeds the total sale price. The buyer can choose to pay out-of-pocket for the difference. However, this is not an option.

While the failsafe is not the most straightforward option, it is the fastest and easiest way to fix things: renegotiate.

While it is unlikely that this will happen, there may be another buyer who is willing to buy your property. You can lower the price if necessary, so the buyer can afford it.

Help when you receive a low appraisal when selling in Atlanta

It can be frustrating to receive a low appraisal. However, you can contact our team of skilled professionals at 770-769-5295 for help!

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