If Your Real Estate Appraisal is “Short”
As a seller you are proud of your house that you are selling. You know better than anyone how much care you have taken to make sure that your home is in good condition. Your real estate agent went over the recent sales in the area and you reviewed current competition for the price others in the market are selling their homes.
As a buyer you are anxious to buy the house of your dreams. You know exactly what you want and the budget that you want to stay within. Your realtor showed you enough houses that you are feeling confident in the house that you picked and the price you are willing to pay for the house. And you’ve examined the sold prices of similar homes that have recently sold in the area.
Rising Real Estate Market
After some negotiations, you settled on a sales price and you enter into a contract for purchase. Yes the price may be a bit more than some of the recent sales, but after taking everything into consideration you have both come to an agreement.
Everyone is excited and happy until the news from the appraiser comes back.
The Real Estate Appraisal is "Short"
What Happens Next
- The buyer and seller can walk away and cancel the sale.
- The buyer can base his loan on the amount of the appraisal and make up the
difference the seller wants with cash.
- The seller can drop the agreed upon price and sell the house at the
appraised price.
This can be very stressful time for both the buyer and the seller. It is the real
estate agents job to guide clients through their options. As a buyer and seller, remember that as frustrating as the situation is, you both have a goal in mind. Focus on that goal and choose the option that best accomplishes your goal. If you keep your goals in mind, then even if you have trouble with your real estate appraisal you’ll know what options is best for you.