July 14, 2017
High buyer demand, tight inventory – sounds like a home sellers ideal conditions for a fast sale, doesn’t it? With inventories ebbing on the low side for as long as they have, multiple offers are common when a home is priced right. Great news for potential home sellers. But what happens when the appraiser returns an appraisal of value based on lower past sales that drag an appraised evaluation downward?
No one wants to be caught between the proverbial rock and a hard place when they are trying to sell a home. With so many details to coordinate for a successful sale, expert representation takes on an ever more necessary role to those who don’t want to leave their sale to chance and circumstance.
There are solutions and for buyer or seller, having options and knowing how to apply them for your desired outcome in a sale puts you in a position of power. That may mean the appraisal, or part of it, could be waived in an offer process. In the situation of a low appraisal, your agent representative will help navigate the appraisal process and the bank as necessary, should a reconsideration be available. In the end, the appraisal is an opinion, so a well-documented plan to persuade that opinion devoid of emotional attachment to benefit your situation will prove to be a powerful tool at this point in the sale.
- BUYER- it is a buyer’s choice who your lender is – choose a lender wisely and one that uses local appraisers who are more familiar with the market, and real estate industry trends and changes in your local buying area. Your agent should be well prepared for your appraisal and meet the appraiser to be helpful by providing information about the home, the location, schools, transportation, data about recent comparable sales, and any other materially relevant information, such as changes in the general market
- SELLER – consult with your listing agent on how to best avoid appraisal issues and what strategy may be best in the sale of your home when it comes to offer terms
Last but not least, in the situation of a property that doesn’t appraise, never be afraid to request a second opinion. This isn’t your best solution, as it may leave you with no room for reconsideration, but if it’s the only possible solution, better to be prepared than caught off guard.