Shorewest Shares: What to do if your home doesn’t appraise at the price you want to sell?

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SS3The housing market is hitting its peak and housing sales are continuing to heat up. When home sales increase, house prices hold firmly or go up, and inventories decrease. When this happens, buyers and their banks tend to negotiate less. When sales volumes decrease, home prices level off or decline.

As inventories rise, buyers feel more confident about making lower offers. If the housing market in your area is in a decline or coming out of one, appraisers are supposed to apply a formula to make sure that the current price isn’t overoptimistic. Due to new banking regulations, your home must meet strict new appraisal standards that include examining home prices going back as far as one year.

What happens when you think you’ve sold your home and the buyer’s bank comes back with a property appraisal that’s less than the contract price? Here’s what you can do to help:

  • Other ways to keep the contract together. The buyer is pleased at the option of getting your home for less, but you still have some advantages: your comparables (other homes that have recently sold and are currently on the market that are similar to yours) and the fact that the buyer wants your home and was willing to pay the contract price. Appraisers can examine home prices as far back as one year, but that doesn’t reflect the current market. A Shorewest agent will help your appraiser look at similar homes that have recently sold, and the multiple offers they may have received, substituting the price.


  • Challenge the appraisal. This is where a Shorewest, REALTOR® can be the most helpful. They can determine what kind of appraisal was used to arrive at the home’s valuation. Your Shorewest, REALTOR® can examine the homes that were used in the appraisal and determine if the comparables are similar or not. If not, your home still has a chance. Have your Shorewest, REALTOR® provide an updated CMA (Comparative Market Analysis). It could be that newer market information is now available.

Getting ready to sell your home? Contact a Shorewest, REALTOR® today.

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Categories: Home Selling

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