What If My Home Appraisal Comes In Low?
home appraisal, low appraisal, appraisal gap, buying a home, selling a home, Virginia real estate
What Happens If the Appraisal Comes in Lower Than the Contract Price?
The lender will only lend based on the appraised value. The buyer and seller then talk about options, such as a lower price, the buyer bringing more cash, or a different plan.
What happens if a home appraises for less than the price in the contract?
The lender will only lend based on the appraised value. The buyer and seller then talk about options, such as a lower price, the buyer bringing more cash, or a different plan.
An appraisal is an opinion of a home's value from a licensed appraiser. The buyer's lender orders it.
The Mike Webb Team (Mike and Claudia Webb, RE/MAX Allegiance) helps homeowners in Arlington, Northern Virginia, Maryland, and Washington, DC get their homes ready to sell and sold.
What does an appraiser look at?
The appraiser looks at the home's size, condition, and features, and compares it with similar homes that sold recently nearby. That is why condition and comparable sales matter.
What are the options if it comes in low?
Lower the price. The seller agrees to a price that matches the appraisal.
Meet in the middle. Both sides share the gap.
The buyer pays the difference. The buyer brings extra cash to closing.
Challenge the appraisal. Your agent can send the appraiser more comparable sales, if there are good ones.
Walk away. Some contracts allow it. Read your contract and ask your agent.
What can sellers do to prepare?
Price the home from recent sales, not from last year or an online guess.
Keep a list of improvements and repairs.
Make sure the home is clean, bright, and cared for on appraisal day.
Online and preliminary estimates are starting points. A property's potential market value depends on its condition, location, features, competition, market conditions, and other factors.
What can buyers do to prepare?
Ask your agent how your contract handles a low appraisal. Know how much extra cash, if any, you could bring.
FAQ
Can the seller just say no to a lower price?
Yes. Then the buyer may need more cash, or the deal may end.
Does a low appraisal mean the home is worth less?
It means one appraiser's opinion, on that day, came in lower than the price.
Who pays for the appraisal?
The buyer usually pays. Ask your lender.
Call or text The Mike Webb Team at 703-350-3884 or visit claudiawebb.com.
The Mike Webb Team, RE/MAX Allegiance. Arlington, Virginia. Equal Housing Opportunity.
