Sellers looking to sell sometimes need to turn to a low appraisal buyer. This often happens when dealing with buyers who are relying on obtaining a mortgage to make a purchase. Before this purchase can be approved, a home appraisal is typically required.
Lender will only want to lend buyers money if the house they are purchasing is valued high enough to warrant them writing the loan. Therefore, if the house does not approve for high enough buyers will either need to renegotiate the contract price with the seller or the seller will have to uncover a low appraisal buyer.
Here is what you need to know to be prepared for the home appraisal process.
- You have no control over the home appraisal
While this can be a hard pill to swallow, especially if you really want to buy the house, you have no control over the appraisal process. After the housing market crashed in the early 2000’s the rules have changed and the guidelines have become even more strict for appraisers to follow.
While this can be frustrating if the house doesn’t appraise for high enough, remember as the buyer the appraisal is protecting you from overpaying on a property.
You can’t influence the appraised value and you wouldn’t necessarily want to anyway.
But as seller a low appraisal can put you in a tough situation, especially if you need to sell your home immediately. If you find yourself in need of a low appraisal buyer, contact our team today. We can make you a cash offer and get you out of your home asap.
- Know what the comps look like when writing an offer
Before you agree to pay a price that might be too high for the house that you want, take a long hard look at the local comps. Understand what makes the house worth the value that the seller and you have agreed on for the property. Then, ask your lender to provide a local appraiser that will be familiar with the area and all of the things that you believe impacts the value of the house.
You are not able to handpick an appraiser, but you can request that the person be experienced in the local market.
- Make sure there is communication between your agent and the appraiser
There is nothing wrong with your real estate agent being present during the appraisal process. They can provide the appraiser with the reports showing the local comps that you used when writing your offer. Your agent may be able to shine some light on the reasons that certain houses in the neighborhood sold much lower than they should have.
- Ask about a revaluation if necessary
It is your right to look at the appraisal report. After all you paid for it.
If you find anything that looks like it could be throwing off the value of the house then talk to your lender about asking for a revaluation. You might need to pay another appraisal fee, but it is well worth the cost if it keeps you from going back to the MLS to find another house to buy.
Buyers should understand that if the home appraisal comes out low you have a good chance of re-negotiating with the seller.
However, should the buyer not be willing to negotiate, it is now on the seller to find a low appraisal buyer. If you are in need of selling your home fast, call us today.
