Don’t let a low home appraisal disrupt your sale. You have options.
What options do sellers have if their homes appraise for less than their asking prices? Despite rising interest rates shrinking your potential pool of buyers, now is still a great time to sell your home. Home prices are still increasing, just not as quickly as they were over the last couple of years. However, rising home values can also present a challenge for sellers. If your buyer’s appraiser values your home at less than you want to sell it for, what can you do?
1. Confer with your real estate agent to make sure your home isn’t overpriced for the market. If so, you’ll need to adjust your price to align with your current market conditions since most buyers won’t want to shell out thousands of dollars to cover the difference between the appraised value and the asking price.
2. Look over the comparable sales in your area. The appraiser already bases their value on comparable home sales nearby, but you might be able to find better comps to justify your asking price.
3. Lower your asking price. If you’re motivated to sell your home and getting more than your asking price isn’t your top priority, you could also simply lower your asking price to match the appraised value. That could entice your buyer to increase their earnest money deposit, depending on how you negotiate.
4. If you and your buyer can’t reach an agreement, they could cancel their contract and walk away. That would allow you to go back to square one and order a new appraisal altogether.
If you found this information helpful or if you have any further questions, feel free to call or email me. I’d love to connect with you!