Home appraisals can be tricky. Though we recently discussed how to get the best outcome for your home appraisal, things don’t always go as planned. Many factors, both internal and external, can impact the final result of your appraisal. So, what to do when your home appraisal is too low?
1. Realize that you aren’t alone
Particularly in rising housing markets, a lower-than-expected appraisal happens more often than you might think. Appraisal results can be influenced by the condition of similar homes or local distressed sales.
2. Ask for an appeal
Home appraisers take their work very seriously, but everyone makes mistakes. If you are sure the appraised price of your home is too low, ask for an appeal or “rebuttal of value.” As stated by realtor.com, you’ll need your whole home-selling team to help with this process. But don’t just ask for a redo: you need to give the appraiser a reason. Your best bet is to provide them with an example of a similar home in your neighborhood that was just sold.
3. Highlight changes
Did you repair or renovate your home before putting it on the market? If so, be sure the appraiser knows about these updates. Renovations can make a difference in appraisal value.
4. Second opinions
An alternative to going through the appraisal appeal process is to pay for a new appraisal by a different firm. Your buyer may even be willing to pay for this in order to prevent the sale from falling through.
5. Buyer pays
If the appraisal appeal process does not work in your favor, the buyer can make up the difference in cash–another way to prevent the sale from falling through. Check with lenders to find out if this a possibility for your sale.
Do you have home appraisal tips to share? Join the conversation in the comments section below!