What to Do if Your Home Doesn’t Appraise

Many buyers think a failed appraisal spells the end for their homeownership dreams. That’s not true at all. You have many options to choose from on how to proceed. Want to sell your home? Get a home value report Want to buy a home? Search all homes for sale So, what happens if your home you recently purchased does not appraise? 1. The buyers can cancel the purchase agreement. The buyers will receive their earnest money deposit back. 2. Ask the sellers to reduce the purchase price to the appraised value. If they agree, an amendment is drawn up and both the parties sign reflecting the new purchase price. 3. Buyer and seller can meet in the middle of the appraisal value and original contract price. For example, if the original price was $500,000 and the appraised value was $490,000 and they agree on a new purchase price of $495,000, the buyers will have to come in with an additional $5,000. The bank will only lend money on the appraised value. If done correctly, it’s a simple renegotiation. If done correctly it’s a simple renegotiation that makes both the buyer and seller happy with the end result. If you have any additional questions, please don’t hesitate to contact me immediately. **A broker is licensed to render real estate advice. If you desire tax, legal or lending advice, consult the appropriate professional. Videos and marketing by Broker are intended to help educate the public. Laws and real estate practices may change at anytime. All information deemed reliable but is not guaranteed and determined on a case-by-case basis. If your property is listed, please disregard as it is not our intention to solicit. We cooperate fully with other brokers. Equal Housing Opportunity and member of the National Association of Realtors.

You can listen to What to Do if Your Home Doesn’t Appraise online on Radio and Podcast. Open the player on this page to stream the available audio.

What to Do if Your Home Doesn’t Appraise is an episode from San Diego Real Estate Podcast with Dale Downing by Dale Downing.

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This episode was published on May 25, 2017.

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