When you accept an offer from a homebuyer, you might assume that everything will work out fine and that it is a done deal. While things might work out for you, some people experience some challenges during the closing process. One challenge you might face involves the home appraisal the buyer gets for your house. Appraisals are always necessary with home sales, but what do you do if the amount is too low? Here is some information to help you know how to handle this situation.
How the Buyer Might Feel About This Problem
When a person looks for a home to buy, they look for a house that has certain features. First, they want a home that is the right size and condition. Next, they want a house in the right area. Finally, most people want a good deal on a house. When a buyer finds out that the house is not worth as much as they offered for it, they will likely feel discouraged. They might even want to find a different house to purchase. In fact, buyers have the legal right to void purchase offers when the appraisals are not high enough.
How the Lender Feels About It
Buyers also have concerns with their lenders when this occurs. Lenders do not want to issue loans when they must assume too much risk. If a lender offers a 100% loan to a person, they will base the loan amount on the appraised value. If the appraisal is lower than the amount the person offered, the lender might not give the loan to the buyer.
Options to Solve the Problem
If you are selling a house and encounter this problem, you have a few options. The best option is to agree to lower the selling price of your house. If you lower it to the appraised value, the buyer might agree to it, and the lender will have no issues with the loan. The other option is to hire a different appraiser. The downside to this is that most appraisers complete the assessments the same ways, and they will likely be similar in price.
Residential appraisals are a vital part of home sales. If you want to sell your house, you might want to get an assessment before listing it. By doing this, you can determine the home's value directly from a professional. If you have questions about this topic, contact a real estate appraiser today.Share