So What Happens If The Appraisal Comes In Low?!🏠📑

So….. what is an appraisal!?

​An appraisal is an official report ran by an appraiser to determine the current value of a home.

In a normal market, a low appraisal amount could lead to negotiations between the buyer and seller. In today’s market seller’s like to have this negotiated up front! ​

There are three options when using the Appraisal Addendum; however, the most common option in today’s market is “waiving the option to back out” based on the appraisal. This means the buyer will have to come cash out of pocket for the difference between the sales price and the appraised price. ​

To know what your options will be if the appraisal options come in low, these are things you should consider and discuss with your lender:

– What type of loan product are you using?

– What is the loan to value ratio?

– How much cash out of pocket do you have to bring to the closing above closing costs?

Why you would want to sign an appraisal wavier:

In today’s market, we’re listing homes and getting offers within a day or two. Anywhere between 5-40 offers on ONE property. Some of them are cash offers so they don’t need an appraisal which a lot of sellers would prefer. Or if they can get a higher price with a buyer financing property with a conventional or FHA loan and you sign the appraisal waiver you can compete with that cash offer. This will make your offer very competitive in today’s market!

However, this is not the best option for every buyer and can be risky. That is why we are here to help! As a team, we’re here to give you advice during this process in order to help you make the best and strongest offer that makes sense for you and your family.

If you’re a buyer in today’s market, reach out to us. We want to walk you through every step of this process!✨