A low appraisal can cause problems for both the homeowner and potential buyers. If your home appraised value is low, buyers could be forced to walk if their mortgage lenders are not willing to fund a home below the set appraisal limit needed for a loan. If you are worried about receiving a low appraisal, here are some things you can do before and after the appraisal.
Provide the Appraiser With Relevant Information
If the appraiser is not from your immediate area, he or she might not be aware of all of amenities of the neighborhood that can affect your home's value. For instance, if you live in a neighborhood that is in a good school district, this could add to your home's value. If you have made any improvements to your home, such as adding a pool or upgrading the kitchen, let the appraiser know.
The appraiser's job is to compare your home to others in the neighborhood that have recently sold and analyze the overall market to determine a value.
Request a New Appraisal
In the event that you do receive a low appraisal, your first action should be to request that a new appraiser is sent to your home for a new evaluation. If you believe that the first appraiser did not fully take into account every aspect of your home and neighborhood that should be considered when determining your home's value, you can argue that he or she lacked the competency needed to appraise your home. If you have a potential buyer who has expressed interest in the home, ask him or her to join you in asking for a new evaluation.
Ask the Buyer to Pay the Difference
There is a possibility that the buyer would be willing to cover the difference between the appraisal value and your selling price. The buyer will need to add the difference to the amount that is being paid down on the home. If the buyer has agreed, ask him or her to clear this with the lender before closing to ensure that there are no possible problems.
Accepting a low appraisal is always an option, but if you feel that your home is worth more, you can fight to get a higher appraisal. Talk to your real estate agent about other things you can do to influence the appraisal of your home. More specific questions about appraisals can be directed to companies such as East Coastal Appraisal Services.