All Discussions Tagged 'Real' - Real Estate Finance2024-03-19T01:52:43Zhttps://realestatefinance.ning.com/forum/topic/listForTag?groupUrl=transactional-funding&tag=Real&feed=yes&xn_auth=noHow to Deal With a Low Home Appraisaltag:realestatefinance.ning.com,2016-06-01:6517464:Topic:2691122016-06-01T03:03:11.797ZJanos Sztojkahttps://realestatefinance.ning.com/profile/JimSztojka
<p>How to Deal With a Low Home Appraisal</p>
<p><br></br>Want to learn how to deal with a low home appraisal? In a competitive real estate market, a home being sold may enter into a multiple offer situation which could potentially raise the purchase price above the comparable sales in the area. In a situation like this, it is possible that the home appraisal for the buyer's mortgage lender will come in lower than the purchase price. In a real estate market that favors buyers (home prices are soft…</p>
<p>How to Deal With a Low Home Appraisal</p>
<p><br/>Want to learn how to deal with a low home appraisal? In a competitive real estate market, a home being sold may enter into a multiple offer situation which could potentially raise the purchase price above the comparable sales in the area. In a situation like this, it is possible that the home appraisal for the buyer's mortgage lender will come in lower than the purchase price. In a real estate market that favors buyers (home prices are soft or declining), sellers can also face a home appraisal that is lower than what they paid for the home if they bought the house at the peak of the market. Be aware that a low home appraisal can happen in any type of real estate market.</p>
<p>Why Do Low Appraisals Happen?</p>
<p>Here are a few reasons why a home appraisals may come in low:</p>
<p>Inflated home price because of multiple offers.<br/>Declining real estate market due to a large inventory of homes and not enough buyers.<br/>The seller has overpriced the home.<br/>The real estate appraiser lacks experience and doesn't understand the influences on value.<br/>The real estate appraiser incorrectly selected his comparable sales for his report which may have resulted in a lower home value than what should have been assessed.</p>