Monday, June 8, 2009

Appraisal Issues

"Your home is worth what a buyer is willing to pay." That is true but watch out for the appraisal.

Sellers have 3 things to be concerned about these days.

1. Waiting for the right buyer to enter your home and make an acceptable offer.
2. Negotiating repairs following inspections.
3. Getting an acceptable appraisal.

Today a seller was told the appraisal was $15K less than the negotiated sales price. How can that be?? We have a willing and able buyer. The buyer sets the market, right? NO! Beware, the appraiser now can set the price that the lender will accept for the property.

What are a seller's options. Accept the reduced price. Fight the appraisal and request another one. Or put the house back on the market and hope for a better appraisal next time.

The best option is likely to accept the reduced price because there is no guarantee waiting for a new offer will give you a better outcome. Also, a buyer may walk if another appraisal is requested and provides a higher price.

Something else to think about.

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