There are three options to choose from if the appraisal came in low.
You’re under contract, but there’s an issue—the appraisal came in lower than the contract price. In this situation, what do you do? There are some options you can take if this happens to you, and today I’m sharing them with you.
So the first option is: You are going to talk to the other parties, and find out if you can buy the home for the lower appraised value. All buyers want to buy homes for less money. This is a good opportunity to get in there and get the home for a reduced price.
If the seller refuses, the second thing you can do is negotiate with the seller. You’re at the low end, and they’re at the high end; try to meet somewhere in the middle. Keep in mind that anything over and above the appraised price is going to require you to bring cash to closing. So if you are around $2,000 off the appraisal, you would have to bring $2,000 to closing.
The third item is that you can be released from the contract if you’re not comfortable, and you cannot reach a happy medium ground with the seller about a new price. You are in no way responsible for moving forward if there is an appraisal issue, and you don’t feel comfortable with the new price terms.
If you have any questions about appraisals or anything real estate related, please reach out to me and my team. We’d love to help.