Don’t let a low home appraisal disrupt your sale. You have options.
Despite rising interest rates shrinking your potential pool of buyers, now is still a great time to sell your home. Home prices continue to increase, just not as quickly as they did over the last couple of years. Still, keep in mind that rising home values can also present a challenge for sellers. If your buyer’s appraiser values your home for less than you wanted to sell it for, what can you do?
1. Confer with your real estate agent to make sure your home isn’t overpriced for the market. If it is, you’ll need to adjust your price to align with the current market conditions since most buyers won’t want to shell out thousands of dollars to cover the difference between the appraised value and the asking price.
2. Look over the comparable sales in your area. The appraiser already bases their value on comparable home sales nearby, but you might be able to find better comps to justify your asking price.
3. Ask your potential buyer to make up the difference. Many buyers don’t want to do this, but you have the upper hand in a seller’s market like the one we’re in now. Some may even agree to an appraisal gap guarantee, which ensures they’ll pay the difference if your appraisal is low.
4. Lower your asking price. If you’re motivated to sell your home, and getting more than your asking price isn’t your top priority, you could simply lower your asking price to match the appraised value. That could entice your buyer to increase their earnest money deposit, depending on how you negotiate.
If you need to know how to avoid the most common problems with selling your home, call us to get a copy of our free report, “The 17 questions you absolutely must ask a real estate professional before you list your property.” Call us today at (858) 455-9300. We look forward to talking with you.
