Navigating a Low Home Appraisal in the Homebuying Process
Tuesday, 14 May 2024, 13:30
Home Appraisals in Homebuying
Reaching the appraisal stage in a home purchase can reveal hurdles, especially if the home's value falls short of expectations. Understand your options for dealing with a low appraisal to secure your home successfully.
Options for Coping
- Get a larger mortgage: Ensuring you have room to cover appraisal shortfalls can be a strategic move.
- Increase your down payment: Adding to your down payment to bridge the gap can be a viable solution if financially feasible.
- Renegotiate with the seller: Explore the possibility of adjusting the purchase price with the seller to align with the appraisal.
- Request a new appraisal: If you disagree with the initial valuation, seeking a second opinion can provide clarity but may come with additional costs.
- Walk away: While a last resort, being prepared to walk away and reassess your options is sometimes necessary in the face of a significant appraisal shortfall.
Whether adjusting your finances or exploring negotiation tactics, overcoming a low home appraisal requires careful consideration of the available options to proceed in your homebuying journey.
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.