If the appraisal for a home you are purchasing comes in lower than the agreed-upon purchase price, it can create several challenges for you as the buyer. Here are some steps you can take:
- Review the appraisal report: Ask the appraiser or your real estate agent for a copy of the appraisal report. Review it carefully to understand how the appraiser arrived at the value they did. Check for any errors or omissions that may have affected the appraisal value.
- Determine if the appraisal is accurate: If you believe the appraisal is inaccurate, you may be able to challenge it. This can be a difficult process, and it’s important to have evidence to support your claim. Talk to your real estate agent about whether or not it’s worth pursuing.
- Renegotiate the purchase price: If the appraisal is accurate and the value is lower than the agreed-upon purchase price, you may be able to renegotiate the purchase price with the seller. You could ask the seller to lower the price to match the appraisal value, or you could agree to split the difference with the seller.
- Bring more money to the table: If the seller is not willing to lower the purchase price, or if you don’t want to renegotiate, you could choose to bring more money to the table. This could mean increasing your down payment, paying for any difference in cash, or taking out a larger loan.
- Walk away from the deal: If none of the above options work for you, you may have to walk away from the deal. This can be a difficult decision, especially if you have invested a lot of time and effort into finding your dream home. However, it’s important to be financially responsible and not overpay for a property.