Here to help me discuss today’s topic is Steve Stork of Summit Funding. Steve has been working with us for about 10 years, and we consider him an expert on this subject. Together, we came up with a list of things that can happen if your house doesn’t appraise:
We can split the value.
We can ask the buyer to bring cash.
We can lower the price and then close.
We can choose not to close. More often than not, you’ll see a section on an appraisal report entitled “pending sales,” which refers to the comparable homes to yours that, like yours, are under contract. Because they don’t yet have a sales date, pending sales are not given any weight in terms of the value of your property. So, by calling that listing and finding out where these pending sales are in the process may give you some insight into a potential comparable you can add to the mix once it closes. At that time, you can send the appraiser back out to the home to reinspect the property and use the comparable to help calculate the overall sales value.
We can wait for more comps to sell if prices are going up.
We can also refute the appraisal if the buyer will cooperate. If you have any additional comparables the appraiser might have missed, you could bring those to the attention of the appraiser, possibly earning some value for your property.
We can ask the buyer to reapply with a different lender.
If it was an FHA appraisal, the appraisal sticks to the property for four months. Unfortunately, there’s no way to dispute that appraisal; you just have to wait until that period is over and to take another FHA offer.
“
Because they don’t yet have a sales date, pending sales are
not given any weight in terms of the value of your property.
”
If you have any questions for us, feel free to reach out. We are here to add value to your real estate experience.
What happens if your home doesn’t appraise?
Here to help me discuss today’s topic is Steve Stork of Summit Funding. Steve has been working with us for about 10 years, and we consider him an expert on this subject. Together, we came up with a list of things that can happen if your house doesn’t appraise:
“
Because they don’t yet have a sales date, pending sales are
not given any weight in terms of the value of your property.
”
If you have any questions for us, feel free to reach out. We are here to add value to your real estate experience.