Here are the options you have when an appraisal is below a home’s price.
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There are four options that you have when your appraisal comes in below the agreed-upon purchase price for your new home:
1. The seller can lower the price from the agreed-upon price to the appraised value.
2. The buyer can bring in cash to make up the difference between the appraised value and the agreed-upon price. This happens a lot with a home that is overly improved for the area. The buyer sees value in bringing in the cash.
Meeting in the middle is a good compromise to keep the deal together.
3. The buyer and seller can meet in the middle. The buyer brings a little extra cash and the seller lowers the price a little bit. It’s a good compromise to keep the deal together.
4. The buyer can walk away if a compromise cannot be made.
These are your four options for a low appraisal. If you have any questions about appraisals, buying a home, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
Let BLG be your trusted agent and advisor for buying, selling or investing in Conejo Valley real estate.