The Secret To Fixing a Low Appraisal

Despite rising interest rates and a shrinking pool of buyers, now is still a great time to sell. Home values are still increasing, just not as dramatically as they have in the past. However, the rise in home values can create a challenge for sellers. The appraisal may turn out to be less than you’re currently under contract for.  When situations like this happen, what options do sellers have?

1. Look at the buyer's finances. How much money are they putting down? We see many buyers putting down 30% or 40%. If that's the case, the down payment doesn't matter what it appraises for because your home will be enough money to make up the difference. 

2. Look over the comparable sales in your area. We'll bring the comparables to the appraiser to help them get a faster and more accurate valuation. 

"Rising home values can cause a challenge for sellers."

3. Ask the buyer to put in an application with another lender. Doing so will trigger a new third-party appraisal that will likely give you a different value closer to your contract price so you can make the deal happen.

It's important to pick the right buyer, and it's my job to help coach you through that process. If you have any questions, feel free to give me a call at (626) 340-8050. I look forward to hearing from you.