Posts

Appraisers Can’t Ignore “Bad” Comparable Sales; Agents Shouldn’t Either

AGENTS WERE LIVID WHEN APPRAISAL CAME IN LOW We recently had an appraisal come in $25,000 under contract price – and the agents were irate! They sent us comps that they insisted the appraiser should correlate to – but: (1) the comps were in another development a few miles away; and (2) the comps were […]Read More

Covering Appraisal Shortfalls

Whenever the market heats up like this, particularly in the springtime, appraisals invariably come in low. This is simply because there are often no closed comparable sales (comps) that even come close to supporting current contract prices, especially when there are bidding wars. REMINDER: Appraisers can only use comps that close prior to the appraiser’s […]Read More

5 Options For A Low Appraisal

Here are a buyer’s options when an appraisal comes in low: 1. Negotiate a price reduction with the seller. This option is often not viable in a competitive market like today’s, when sellers have ample back-up offers. 2. Bring in the extra cash necessary to make up the appraisal shortfall. This option too is often […]Read More

Switching to FHA or 80/10/10 If Appraisal Comes In Low

We often have buyers make offers with no appraisal contingencies as a necessity in competitive situations. We remind those buyers that they have several options if their appraisal happens to come in low. 1. Simply bring in the shortfall. Buyers can stick with their original financing, but bring in the difference between the appraised value […]Read More