You Sold Your Home, Now Will it Appraise?
The Fall market has calmed down from Seattle’s spring heights, yet the problem of low appraisals still exist for homes some homes. The appraiser looks to justify the price of the buyer’s offer and not to exceed it. It’s rare for the appraisal to come in higher than the contracted amount even in a rising market.
In some neighborhoods there still have not been enough sales due to low inventory levels, to justify the inflated price recently driven by multiple offers.
Whether I represent the buyer or the seller in this situation, low appraisals are a huge stressor because it may cause the buyer to regret their offer and look for an exit strategy. It’s important that cool heads prevail and that all parties are working toward the same goal of closing the transaction.
This happened in a transaction I worked on earlier this year, where the buyer agreed in their original offer, to cover up to $15,000 in appraisal shortfall. As it happened, the home did not appraise but was only $10,000 short. The buyers then had to come out of pocket an additional $5,000 in cash and the loan proceeded. If the buyer has cash, this can be an acceptable solution. If not, and without a pre-agreement, the buyer can request the seller drop the price and this can be where the deal falls apart or goes to the back-up offeror.
Whether you are a buyer or a seller, you want to consider appraisals when you price your home or make your offer. Always scanning previous sales in the neighborhood before making a move, will protect your interests. Let me know if you have any questions about your home’s value. #QueenAnneLife #LiveinMagnolia