When it comes to selling a house, the unfortunate reality is that some factors are beyond your control. A low home appraisal is one of them. While the news may be discouraging, there are some steps you can take to turn the situation around. Here are several to consider.

What to Do If a Home Appraisal Comes in Low

1. Reduce the Sale Price

Perhaps the appraisal was low because the home’s value was too high for the market. To keep the deal alive, lower the property’s price. Even if a promising prospect decides to walk away from the negotiation table, reducing the cost could appeal to more potential buyers.

2. Compile Comparable Home Sales

You can ask your real estate agent to compile a list of home sales in the area. These recent transactions may provide leverage for your initial sale price. Ask the loan underwriter to review the comparable sales. The extra look could justify conducting another home appraisal that might be more favorable to you.  

3. Fill in the Cash Gap

The goal is to get your house sold for a price that benefits you. If the home appraisal comes in lower than expected, consider paying the difference between the appraised price and your initial sale price. Depending on the lender, this may not be an option. If not, offer to pay a portion of the buyer’s closing costs. 

4. Check Pending Sales

Ask your real estate agent to ask listing agents about the pending properties for sales. These are homes that are in the process of negotiations but have not reached the closing phase. While listing agents are not required to share sale prices, some may be willing to help. Armed with these figures, you could have additional support for requesting another home appraisal. 

A low appraisal shouldn’t be the factor that stops a home sale in its tracks. Since 1991, Caddell Appraisals in Estes Park, CO, has provided expert analysis for buyers looking to sell their properties in Larimer County. The team of licensed appraisers has extensive experience working with all types of property, including mountain-based real estate. Their goal is to help you achieve the most value for your property. To learn more, call (970) 577-9545. You can also go online to request a home appraisal fee quote.