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Imagine a seller lists a house at $500,000 and a buyer agrees to purchase it at that price. But after the buyer’s lender orders an appraisal for the home on the bank’s behalf, the appraisal comes in at $475,000.
What happens next? What can a buyer or seller do in the event of a low appraisal? In this scenario, there are three ways the transaction can proceed:
- The seller can accept the appraised value as the new purchase price
- The buyer and seller can negotiate a middle ground in terms of price
- The transaction gets canceled
Low appraisals are something that, unfortunately, sometimes occur in a rising market like ours. The good news is that 99% of the time, deals with low appraisals still get resolved.
If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.
