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What if the Home You are Buying Does Not Appraise?
What if the Home You are Buying Does Not Appraise? 
If the home you are planning on purchasing is unique there may simply not have been many sales of similar homes in the area.  In which case, arriving at a fair offer price can sometimes be a challenge. 
To arrive at an offer price, your buyer agent should put together an analysis for you of all of the homes in the area that have sold, preferably within a mile of the home and within the past six months.  These homes will have a similar square footage and be in the same age range, i.e., a newly constructed home is not a comparable sale for a home that was built in 1952. 
 
But, what happens if your buyer agent does everything appropriately and the house does not appraise? 
In a slow or declining market there may not have been many sales of similar homes in the town you are looking in. This factor could definitely have an effect on the appraisal outcome.  
As a precautionary measure, I usually put in the offer to purchase that home "must appraise for the sale price."  This acts as an insurance policy that the analysis that ... more

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