Options for Dealing with a Low Home Appraisal
Tuesday, 14 May 2024, 13:30
Dealing with a Low Home Appraisal
After a few years of preparing for homeownership, facing the challenge of a low home appraisal can be disheartening. If the appraised value of your prospective home is less than what you intended to pay, here are some options to consider:
- Get a larger mortgage: Borrow additional funds to cover the appraisal shortfall, ensuring your loan-to-value ratio remains within lender guidelines.
- Increase your down payment: Add extra funds to your down payment to bridge the gap between the appraisal value and the agreed purchase price.
- Renegotiate with the seller: Discuss the possibility of lowering the purchase price with the seller to align with the appraised value.
- Request a new appraisal: If you believe the initial appraisal was inaccurate, consider seeking a second opinion, although it may incur additional costs.
- Walk away: As a last resort, be prepared to walk away from the deal if other options are not feasible.
While facing a low home appraisal can be a challenging situation, evaluating these options can help you navigate through the complexities of the real estate market.
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.