What to Do When Your Home's Appraisal Comes in Lower Than Expected

Tuesday, 14 May 2024, 13:30

Discover the key steps to take when facing a low home appraisal during the home buying process. In this article, we discuss various solutions, such as getting a larger mortgage, increasing your down payment, renegotiating with the seller, requesting a new appraisal, or potentially considering walking away from the purchase. Each option is explored, providing insightful guidance on navigating this common challenge in the housing market.

https://store.livarava.com/121eb2f5-11fd-11ef-a6c2-63e1980711b2.jpg — What to Do When Your Home's Appraisal Comes in Lower Than Expected

Dealing with a Low Home Appraisal

Encountering a lower-than-expected home appraisal can throw a wrench in your home buying process. What are your options when faced with this situation?

1. Get a larger mortgage

Advantage: Borrowing more to make up the difference.

2. Increase your down payment

Advantage: Coping with the low appraisal by adding to your down payment.

3. Renegotiate with the seller

Important: Check if the seller is willing to adjust the purchase price.

4. Request a new appraisal

Consider: Asking for a second appraisal if the first seems inaccurate.

5. Walk away

Alternative: Considering walking away from the purchase if other options are not feasible.

Keep these options in mind when dealing with a low home appraisal to make an informed decision.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.