If you encounter any appraisal issues during your sale, there are three ways you can respond. We’ll cover each of them today.
Real estate contracts include an appraisal contingency that states the property must be appraised at or above the agreed-upon price or the buyer doesn't have to complete the purchase and their earnest money will be refunded
Buyers offering cash will sometimes forgo this contingency, but, in most other transactions, the appraisal process will play a major role.
The appraisal contingency states the property must be appraised at or above the agreed-upon price or the buyer doesn't have to buy.
If your home doesn’t appraise, you’ve got three main options:
1. The seller can lower the price to the appraised value.
2. The buyer can make up the difference in cash.
3. The buyer and seller meet in the middle, with the buyer offering part of the difference in cash, and the seller lowering the price.
If none of these three options works, buyers can generally terminate the deal without losing their earnest money deposit
Appraisal issues have become somewhat more common recently, so hopefully these tips will be helpful to you if you find yourself faced with this kind of problem during your own real estate experience.
If you have any other questions or would like more information, feel free to give us a call or send us a message. We look forward to hearing from you soon.