One common concern among home sellers today is the fear that their property might not appraise, so today we’ll be discussing what happens when this is the case.
More often than not, a home sale is contingent on the property appraising. And given that appraisers are chosen from a random rotation, there is no way for anyone involved in the deal to choose a specific professional for the job. The appraisal process is designed to be performed without bias.
With this in mind, though, there are ways to salvage the deal if your listing doesn’t appraise. The buyer may agree to pay the difference between the contract price and the appraised value, for instance, but this will not always be a feasible option. Another option sellers can pursue is to reduce the price to a point that matches the appraised value.
And if all else fails, the sale can be canceled. If you plan to relist the home, though, be mindful that FHA appraisals stay with the property for six months. Thankfully, conventional and VA loans don’t have this same effect.
Sometimes, the best option is to take your property off the market for a while to see how conditions shift moving forward.
If you have any other questions, would like more information, or would like our team’s help in guiding you through your next real estate deal, feel free to give us a call or send us an email. We look forward to hearing from you soon.