In today’s market with low inventory and high demand, we’re seeing sellers put homes under contract quickly with multiple offers. Sometimes we’re even selling homes over list price.
This is a great thing, but it can lead to appraisal issues. There are some things we can do to combat these issues, and I’ll explain them to you in today’s blog.
The first thing we do is educate our appraisers upfront about the home, its features and upgrades, and the relevant comparable sales. We’re trying to justify the price ahead of time to avoid any issues or discrepancies in value.
If we still come up with an appraisal that’s below the proposed contract price, the first thing we’ll do is review the appraisal for any mistakes. If we don’t find anything, the next step is to offer new or more relevant comparable home sales. Maybe the appraiser didn’t pick the most recent or relevant comps to support your value, and that’s where this official protest comes in.
If the protest is unsuccessful, we can see if the lender would be willing to order another appraisal. A lender will rarely go for this, however. It’s more of a last-ditch effort, but it can work if you have the facts to back it up.
The final option is heading back to the negotiation table. A lot of times, buyers are willing to make up the difference in cash or at least meet in the middle somewhere in a competitive market like the one we have now.
The good thing about appraisal issues is that they only come up when you’ve sold quickly and for a great price. We’re always ready, willing, and able to help with any issues our clients run into or answer any questions they may have. Reach out via phone or email today with your real estate needs.