What to do when an appraisal comes in low.
BY WANDA KUBAT-NERDIN Real Estate Agent with PK Real Estate Utah, St. George, UT 84770 UT DRE# 6541633-SA00 What to do when an appraisal comes in low. New construction is on the rise and builders are raising prices of homes mainly because of consumer demand. While that can push home prices up, it can also create a false market that lacks sustainability. Appraisals are driven by solid data, not recent trends and short-term shifts in the market. If an appraisal comes in low, a rebuttal can be requested but new information must be brought in from other reliable sources. A low report does not mean that the appraiser did not do a thorough job, it could be that the most recent comparable’s have yet to catch up with the current market. There are options for home buyers: Cancel the contract Negotiate a lower sales price Both sides can meet in the middle Ask the lender for a second appraisal to be done Bring cash to closing to make up for deficit amount When the demand for homes is far greater than the supply, it creates a huge competition for buyers. Builders may be less inclined to negotiate in today’s market, especially if there are many offers on a home or a lot of potential buyer interest in their product. The value of a home is still based upon what someone is willing to pay and a savvy agent can offer help to weigh the options when an appraisal comes in low. This will allow the potential home buyer make an informed decision on which direction to take to reach the set goal of home ownership. Happy sales...Read More