How to navigate a low appraisal

So you’ve accepted an offer - you and the buyer {or seller} agreed upon a purchase price. Now you’re just waiting to close, right?

Not necessarily. There’s still a potential hurdle in the way – the appraisal. After you and a buyer sign a contract, the mortgage lender working with your buyers will order an appraisal of your property. During this, an appraiser will determine how much your home is worth in today’s market.

What if the appraisal comes in under the agreed-upon sales price? Your home sale could be on the rocks. Why you might ask? Well, the buyers’ lender won’t loan them more than what an appraiser says your home is worth.

A low appraisal doesn’t always mean a canceled deal though. It just means you have to pivot and possibly renegotiate. Watch our video below for our tips on how to handle a low appraisal, whether you’re a buyer or seller.