New Challenges for Home Buyers and Sellers = Appraisals
The ceiling on the price a home will go for, is determined by 3 things:
What buyers are willing to pay.
What sellers are willing to accept.
What the appraiser says, if the purchase depends on a loan.
So, unfortunately, you may get an offer accepted and both parties feel good about the deal. It's a win-win situation. Well, that's until the appraiser comes in $20,000 under the price that was agreed upon! Unfortunately, this is happening more often than may be commonly known.
With lenders being tight these days, you need to prepare yourself for a low appraisal -- and what you will do. Will the buyer bring cash to the table to close the gap? Will the buyer and the seller meet halfway? Will the seller accept $20,000 less? These are the possibilities.
Appraisals can be challenged and sometimes you can order another one. But be prepared to demonstrate reasons why the appraisal should be different.
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