What Are My Options If My Warren County Home Doesn't Appraise?
Fortunately, appraisal issues aren't very common in Warren County, but the possibility always exists that the purchase price for a home won't be met fully by the appraiser's valuation. Now that can feel like a Code Red emergency because the whole deal is at risk, right?
But there are options! The starting point is a close review of the appraisal report. Did the appraiser accurately portray your home? Miss that legal bedroom in the basement or some other key characteristic? Maybe the county has your finished square footage badly underreported? If something can be identified, the appraiser may be able to make the adjustment needed to bridge the gap.
The next area for review is making sure the comparable home sales are really the best comps available. If not, an appeal may again close the gap.
Okay, what happens if the appraiser doesn't see grounds to move the appraisal? There's the option of bringing in a 2nd appraiser, and obviously this will need to be coordinated with the loan officers. Just because the 2nd appraiser gives a "better" number doesn't mean the back rooms of the mortgage makers are going to be happy.
Another option? A change in purchase price/terms that makes the appraisal work. That may mean the seller comes down to the appraisal price. It may also mean some changes in what the seller was willing to leave behind or repair since there net has changed.
Or perhaps the buyer comes up with more cash out of pocket to hold the original purchase price (or maybe the buyer and seller split the difference at some mutually agreeable point, and that doesn't necessarily mean halfway).
And lastly, and this is the one no one really wants, the deal is off. The financing contingency can't be met, and seller hopes for better luck next time, and buyer moves on to look for another home.
Bottom line, the importance of pricing correctly from the start is critical. Failing the appraisal is hopefully not a deal killer, but it can be.
Serving Warren County's home buyers and sellers,
Liz and Bill aka BLiz
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