What Can You Do When a Home's Appraisal Comes in Low?

 What happens if a home doesn't appraise during a real estate transaction? There are three main options the buyer and seller should consider.

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What happens when a property being sold doesn't appraise?

When a house is in escrow and gets an appraised value lower than the agreed-upon purchase price, there are three things you should consider:

  1. The seller can reduce the price. Make it a win-win for both parties to help the transaction keep going forward. 
  2. Set up an arrangement outside of escrow. This is a good option if the buyer really wants to buy the property and they're willing to pay more than it appraised for. Lenders aren't very favorable about things like that, but if both the buyer and seller agree and put the deal in writing, it's totally fine. 

  3. The buyer and seller can set up an arrangement in writing outside of escrow.

  4. The buyer can move on and look elsewhere. If you're looking in an area with an abundance of inventory, the buyer can simply cancel the transaction and go look elsewhere. 
If you have any other questions about home appraisals or you're in the market to buy or sell a home in the San Diego area, give me a call or send me an email. I'd love to help you out!

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