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:

The seller can reduce the price. Make it a win-win for both parties to help the transaction keep going forward.
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.

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

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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Joe Mendoza has been involved in real estate for over 20 years. He has been a Real Estate Broker, Investor, Consultant, Advisor, Mentor, Managing Partner, Acquisitions Manager, and a Nationwide Coach. At present, he is President of the Joe Mendoza Team, Inc. San Diego, California. Mr. Mendoza also is an Executive Real Estate and Business Coach for Tom Ferry Your Coach, based in Newport Beach, CA.

Mr. Mendoza has a long track record of success. While at Prudential California Realty, he ranked as high as the Top 1% in the nation and was number 7 in all of San Diego County. He built a team of 2 full-time employees and 5 licensed associate agents.

Joe Mendoza
CA BRE # 01234540
Katcam Real Estate
100 E. San Marcos Boulevard, Suite 400
San Marcos, CA 92069
Toll-Free 24/7: 877-794-5227
Direct: 619-246-4663
joe@joemendoza.com
JoeMendozaTeam.com

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

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