As June approaches the Real Estate market in Bend is hot, just like the rest of the country, and with a hot market it’s not uncommon to hear about appraisal issues but the question that many homeowners have is what are they supposed to do when their home is appraised for less than what it’s worth?
Step 1 – Lender Contacts the Appraisal Company
Once the homeowner receives an appraisal that they feel is lower than what their home is really worth their lender will contact the appraisal company, submit additional documentation supporting their belief that the home is worth more then ask that the appraiser reconsider their appraisal.
Step 2 – You “Could” Agree With the Appraisal
After receiving the low appraisal you and the buyer could agree with the appraisal, but that should be the last resort because, you’ve already determined what the market value of your home really is.
If you don’t want to agree on the conservative appraisal that you received your next action could be to seek out a new buyer and or new appraiser.
Step 3 – Buyer Could Pay the Difference
Let’s say that the buyer knows that they are getting an awesome deal on your house and they know that the home didn’t appraise for contract price, both you and the buyer could work out an agreement that the buyer pay the balance or difference at the closing table.
Step 4 – Buyer Can Say Goodbye to the Home
If the contract has an appraisal contingency the buyer can walk away from their home and get their earnest money back but they would still lose any money that they’ve invested in inspections or the home appraisal.
Ultimately appraisal issues can be avoided if the seller’s agent meets the appraiser when they show up and be prepared to support the homes contract price.
For more tips on dealing with home appraisals or to view the latest Bend homes for sale, contact me today by calling (541) 383-1426.