When you get a low appraisal, the transaction isn’t over. There are a number of ways buyers and sellers can work together to resolve the issue.
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Low appraisals aren’t ideal, but they don’t have to kill a transaction. If you get a low appraisal, we have some tips to share on how you should approach it.
The first option is to cancel the deal outright. This typically doesn’t happen, but it can. A lot of times, the seller will decide to challenge the appraisal by submitting additional comparable properties to the appraiser through their agent in order to justify their price. At that point, it’s up to the appraiser to decide whether to increase the home’s value or not.
Sellers typically take one of two courses of action in our market.
We are in a VA market, so sellers typically take two courses of action when they get a low appraisal. Some will just put the home up for rent, while some will actually end up lowering their price to meet the appraisal. Sometimes, they will negotiate closing costs. There are a lot of different options depending on the type of loan you have.
If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you!