All home purchases financed by a mortgage require an appraisal. It’s not unusual, however, for the home’s valuation to be lower than the price you and the buyer agreed upon. This puts both parties in a predicament. Sellers have several options in the event of a low mortgage appraisal. Our real estate planners will go over the possible courses of action.
Solutions for a Low Mortgage Appraisal
1. Sell at the Appraised Value
You can always agree to sell the home at the appraised value. This is good news for the buyer. For you, the seller, this means leaving money on the table.
2. Have the Buyer Pay the Difference
The buyer may agree to pay the difference if the difference between the appraised value and original selling price is miniscule. If the buyer really wants to close the deal in spite of the lower-than-anticipated appraisal, then he/she may be willing to make up the difference.
3. Find a Middle Ground
Both parties may agree to split the difference. If the original selling price and appraised value differ by $20,000, for example, then the seller may agree to bring the selling price down by $10,000, while the buyer pays the remaining $10,000.
4. Put the House Back on the Market
This is a disappointing option for everyone involved. However, it may be the only option if the seller is unwilling to lower the price and/or the buyer is unwilling to pay the difference. This is often the last resort; your real estate agent will advise you when to put this option on the table.
We’ll Guide You Every Step
A house is likely the most expensive possession you’ll ever sell. This is why Curtis & Casteel Law Group is dedicated to helping Lynnwood residents part with their home. Our firm will guide you on the best course of action in the event of a disappointingly low mortgage appraisal.
Edited by Justin Vorhees
Real Estate Consulting for Home Sellers
Proudly serving the people of south Snohomish County, north King County, and the Greater Seattle area