If you are a buyer, you can challenge the appraisal and get it re-set and if you are a seller, you can either cancel the deal or bring your contract price down to appraised value. See below for details.
What Happens If Appraisal Comes Back Low - The RealtorDad
La Mesa, CA homes for sale
#RealtorDad #chrisMproperties #lamesarealestate see my website for more: www.TheRealtorDad.com
Hey everybody, welcome to another edition of Real Estate Life Hacks where I take questions from people on the Internet about La Mesa real estate, and I answer them for you. Today's, question I got from Jackson in Rolando and he asked me, "What happens if the appraisal comes back on a deal lower than the purchase price? Is the deal dead?" Well, no, the deal's not dead. Anything can be resurrected.
What Happens If Appraisal Comes Back Low - The RealtorDad
La Mesa, CA homes for sale
#RealtorDad #chrisMproperties #lamesarealestate see my website for more: https://www.therealtordad.com/ La Mesa Homes For Sale
I'm going to answer this for La Mesa sellers and La Mesa buyers. Number one for La Mesa buyers, what happens if that comes up? Well, we go to the seller and we ask them to lower their price to the appraised value because your bank will not lend you money higher than what is the La Mesa appraisal number. Now the seller has to agree to this. So it's 50, 50. The seller can just say, "You know what? I think your appraiser is an idiot and I'm going to try a different buyer to sell my La Mesa home for sale."
Or they can ask you to cover the difference in cash, which I wouldn't recommend doing. Why would you do that? We need to do a little convincing to the La Mesa seller and sell them on the idea that they're not going to get more money than what this appraisal just came in that. That's for the buyers.
For La Mesa sellers, if we're in this situation, I have to look at you and just say, "Look, is it worth trying to find another La Mesa home buyer?"
I'm going to have to look at the numbers myself to figure out if this appraiser was an idiot and maybe we can have the buyer challenge that appraisal with their lender and have a new one done. That doesn't happen too often. The answer is no, the deal's not done. We can always figure it out. But bottom line is with your lender, buyers with your lender, and that appraisal. That's the number and that's all they're going to give you and we're going to have to figure it out with the seller.
I hope everyone enjoyed this edition of Real Estate Life Hacks with the RealtorDad. Please go on my YouTube channel. It's my name, Chris Melingonis. @The RealtorDad @chrisMproperties There's a link somewhere up here or down on this post and subscribe, and you can check them out and like and share this post and maybe we can help answer a question for somebody. Everyone have a great rest of the week.
If you want to learn about the ins and outs of La Mesa Real Estate and San Diego Real Estate, contact me and I will make it easy for you.
What Happens If Appraisal Comes Back Low - The RealtorDad#RealtorDad #chrisMproperties #lamesarealestate see my website for more: https://www.therealtordad.com/ La Mesa Real Estate
To recap:
There are a few things you can do if you are a buyer or a seller...
1. Go back to the seller and ask to lower the contract price.
2. Challenge the appraisal
3. Have buyer make up the difference in cash
4. Cancel and take you chances with another offer and another appraiser.
