Low Appraisal? How to Navigate Contingencies & Save Your Deal

Let's face it, the home buying and selling process can be a rollercoaster ride. One of the biggest hurdles that can throw a wrench into the works is a low appraisal or a contingency clause coming into play.

In this blog, we'll tackle both scenarios, offering up practical tips for Spartanburg and Greenville County residents navigating these situations as buyers or sellers.

For Buyers:

  • Understanding Appraisal Contingencies: An appraisal contingency allows you to back out of the purchase agreement if the appraisal comes in lower than the agreed-upon price. This protects you from overpaying for a property.
  • Facing a Low Appraisal: If the appraisal falls short, don't panic! Here are your options:

                                                                                  

  1. Renegotiate the Price: Work with your realtor to discuss lowering the purchase price to match the appraised value.
  2. Increase Your Down Payment: If you have the financial resources, increasing your down payment can bridge the gap between the offer price and the appraised value.
  3. Challenge the Appraisal: In some cases, there might be errors in the appraisal. Your realtor can help you request a re-evaluation.

For Sellers:

  • Preparing for Appraisals: There are steps you can take to ensure your home presents well for the appraiser. Your realtor can advise on minor repairs, improvements, and decluttering strategies that can maximize your home's appraised value.
  • Responding to a Low Appraisal: If the appraisal comes in lower than expected, don't be discouraged. Here are some options:

                                                                                   

  1. Counteroffer the Buyer: You can propose a lower selling price that meets the appraised value.
  2. Offer Seller Concessions: Consider offering concessions like covering closing costs or paying for repairs to incentivize the buyer to move forward with the purchase.
  3. Wait for the Right Buyer: If the above options don't work, you can relist your property, potentially attracting a buyer willing to pay closer to your asking price.

Remember: Communication is key! Whether you're a buyer or seller facing a low appraisal or a contingency clause, stay in close contact with your realtor. They have the experience and expertise to guide you through the process and help you achieve a successful outcome.

Ready to navigate the exciting world of real estate?  Contact me today, Brian Hurry, your trusted local realtor!  I'm here to help you achieve your home buying or selling goals with confidence.

Schedule a FREE consultation today!

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