What To Do When Your Home Appraises For Less Than An Offer

Choosing to sell your home in Eastern Pennsylvania is a big decision. We know that sometimes throughout the selling process unforeseen things happen.  While it is rare, there are times when you accept an offer on your home only for the appraisal to come back lower than the offer you had on the home.   If this happens you want an experienced real estate team on your side to help guide you through the steps to take next.

 Here is what you need to know.

Don’t Panic

The first thing you need to do is not panic.  Home values are increasing and it may be the appraiser was using comparable past sales that were insufficient and not comparable to your home. The low appraisal could also be a result of recent distressed sales in the area and it was not taken into consideration by the appraiser.

Second Opinion

It is a possibility that the estimate the appraiser gave your home is inaccurate and you should seek a value appeal. This means that appraiser will need to respond to why they valued the home the way they did and whether they chose not to use recent comparable sales.  If that still does not solve the problem, it’s time to work with your lender about getting a second opinion with another appraiser.

Appraisal Contingency Clause

The contract signed on the home should have an appraisal contingency clause built into it which allows buyers to renegotiate if the appraisal comes back lower than the price they offered.   This does not mean that the deal will fall apart. It may mean as a seller you might need to come down a little in price.

Protect Yourself

If you are selling a home and you are concerned that the appraisal may come in under the offer value on the home, you can always get an appraisal done yourself.  This appraisal can be given to the buyer’s appraiser.

The Silva Group is experienced in real estate and in our market/ We work with our sellers to help them price their home competitively and avoid sellers facing an appraisal that is less than their home is listed for. While it’s not common – it could happen.  If you are interested in selling your home or are curious about what your home is worth - check out our free, no obligation home valuation tool here.

If you are looking to buy or sell a home this spring The Silva Group would love to help. We are comprised of the Philadelphia area’s best and brightest in the real estate industry. It would be our pleasure to help you buy or sell a home. Contact us