BUYER APPRAISAL TIPS: How to Get the Deal You Want

You’re in the thick of things now. You’ve gotten pre-approval from the bank, you’ve hunted down the house you want, you’ve signed the purchase agreement and now you’re dealing with a home appraisal before the bank officially approves your loan.

If your appraisal comes in low, this is where your Realtor offers their recommendations on how to proceed, based on your specific situation. If the low value has to do with the appraiser, you can appeal the valuation. This is where you would work with your agent to research similar homes that support the sale price you agreed with the seller on. You present this evidence to the lender, and they submit it to the appraiser for a re-evaluation. The appraiser decides on whether or not to revise their valuation, though.

Alternatively, you can ask your lender for a second appraisal. You’ll pay out of pocket for this one, and there’s no guarantee that the second valuation will be higher or meet the sales price. You’re more likely able to challenge an appraisal for a conventional loan than a government loan. You would need solid facts to back it up in either case.

Your best tip, regardless of the low value being due to the appraiser, listing agent or seller, is to persuade the seller to lower the sales price, or to split the difference between the home’s appraised value and the agreed sales price with you. Again, this is where your Realtor comes in. It’s their job to negotiate for you. Once decided, your lender can get your loan going.

With the appraisal behind you, and your loan in the underwriting process, you can look forward to that closing stage.

You are closer to getting those keys!

Courtesy of the C21 Blog