by Lance Mohr There are many house sales and purchases that have fallen through because buyers and sellers didn’t know what to do, when their house didn’t appraise out. Mortgage lenders will only loan the buyer a percentage of the appraised value and when the appraisal comes in lower than expected, you can end up in a dilemma, without the expert knowledge of a Realtor. For this reason, it’s important that sellers heed the advice of their real estate professional, when initially pricing their home for sale. Despite the best intentions, the ramifications of a disappointing home appraisal may force you to make difficult choices. Foreclosures and short sale transactions could be a reason your comparable sales were priced lower, dragging your home’s value with it. With a constantly changing marketplace, even the most knowledgeable Realtor can’t always predict your home’s exact appraised value. The best way to avoid a disappointing home appraisal may be keeping your home in top condition and making needed upgrades. These are factors that could bring up the appraised value, with all other things being equal. A Realtor can help you determine whether they are enough to make a difference, when it comes to comparable sales, at the time your home is listed. There’s no guarantee you won’t be affected by these distressed properties that fall into the mix of property valuation, however. Normal solutions to a home that doesn’t “appraise out” may include the seller reducing the home to appraised value or the buyer can come up with the difference, in cash at closing. It’s possible either party can cancel the contract. It can depend on how far off the appraisal is and whether the buyer is able to come up with additional cash at closing or the seller is able to take a lesser price. Sellers may be faced with the fact that a short sale is inevitable, if they owe more than a home is worth. While this is a lengthier process, your Realtor can offer advice on how best to negotiate these types of transactions. Dealing with your existing mortgage lender is part of the process, but you may be faced with few other choices. Promissory notes can be written between the buyer and seller, in the case of those sellers that refuse to budge on price and buyers that absolutely want a home they have offered on, regardless. Ultimately, sellers need to make some kind of concession, if they hope to complete any sale of their home, since other borrowers will be faced with a similar outcome, should this tactic not work out. When buying or selling a home in Calgary, sellers should consider the benefits a Realtor can provide. In a highly volatile housing market, it helps to have a professional real estate expert, on your side. Lower appraised values have become a common occurrence in today’s real estate marketplace, but a Realtor will help you negotiate these uncertain conditions. The final results will be much more successful than trying to sell your own home and buyers will save time and money, with their services. About: Noor Shihab is a Realtor in Calgary, AB with more than 4 years of experience. If you have any questions or are looking for an honest, hard working Realtor give me a call. For more information on Calgary homes for sale or Land for sale please visit our website at www.noorshihab.com.
What If My Home Does Not Appraise Out At The Contract Price?
- November 29, 2012
CENTURY 21 Bravo Realty