Talk about a setback! You’ve spent recent months preparing your house for sale or looking for the perfect house to buy, negotiating a fair price, and anxiously awaiting the settlement date. And now the appraisal on that piece of Virginia Beach VA real estate has come in below the asking price. First, whether you are the buyer or the seller, remain calm. This is not an unusual occurrence in today’s market. Understanding the possible reasons for the disappointing appraisal and exploring strategies to save the transaction are your next steps.
- Overpricing by seller
- Declining market values
- An abundance of foreclosures or short sales in the neighborhood
- Inflated price resulting from multiple offers
- Incorrect evaluation by the appraiser
- Cash back to buyer from the seller
- Error(s) on the part of the appraiser
WHAT A SELLER CAN DO:
- Lower the price of the Virginia Beach VA real estate. After researching and analyzing the latest comps with your Realtor, realistically reconsider your asking price and decide whether you are willing to begin the selling process all over again.
- Offer to carry a second mortgage for the buyer if the above option is not possible.
WHAT A BUYER CAN DO:
- Ask the seller to make up the difference in cash.
- Ask the lender for a new appraisal after presenting your justification for this request.
OPTIONS AVAILABLE TO BOTH SELLER AND BUYER:
- Check the appraiser’s report for errors (in facts or omission) in information about the Virginia Beach VA real estate. Verify the accuracy of the square footage, the number of bedrooms and bathrooms. Have any recent improvements you’ve made to the property been included? If not, appeal the appraisal.
- Supply to the underwriter a list of recent comparable sales that justify the selling/purchase price and ask for a review of the appraisal.
- Order a new appraisal. Although you will have to pay for it, it could be money well spent if it results in a higher appraisal. Your lender will give you a list of appraisers if the loan is an FHA one. If it’s conventional, it is subject to the rules of the Home Valuation Code of Conduct (HVCC).
- As a last resort, cancel the transaction. Most purchase contracts contain a loan contingency which deals with low appraisals.
April Partida is a Professional, Experienced and Results Oriented, Top Virginia Beach VA Realtor committed to meeting your needs.
April has distinguished herself as a leader in the Virginia Beach Virginia real estate market. April assists buyers looking for Virginia Beach VA real estate for sale and aggressively markets Virginia Beach homes for sale. April is also a Short Sales and Foreclosures Resource Specialist (SFR). Avoid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure.
You can reach April at 757-227-1777 or by email, email@example.com.
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