Low Appraisals: 8 Actions to Save Your Home Sale

The bidding war that pushed the sale price of your home up can work against you too.

Unless your buyers have a wad of cash or Bitcoin millions buying a home with a mortgage is the way to finance their transaction. That requires an appraisal to determine the value of the property. The appraisal is the instrument that sets the value of the property for the lender. The lender wants to know that the property’s value is higher than the value of the loan.

In a scenario where the house value is lower than the sale price, a sale can fall through. What can you do? #entarlovesyou

Imagine a bidding war in a tight market. Demand can drive up prices above the appraised value. If you are the seller, multiple offers are good news. It means getting more than your original asking price. The buyer is betting on winning the property by offering more mullah.

Until your agent calls to tell you the appraisal came in below the agreed-upon sales price. This situation sinks many hopeful sales situations.

The good news is that a low appraisal doesn’t have to be a deal killer. Your agent can make all the difference when it comes to bouncing back from a low appraisal by working out the options. Getting everyone on board to save the sale. #appraisals

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Get ready to Negotiate? Here are six options you can use to save the sale.

1. Reduce the price of the house to the appraised value

As the seller, you can always sell the house at the appraised value without negotiating with anyone. This is the fastest way to resolve the issue of a low appraisal, but it could mean leaving money on the table. Remember, a ready buyer is worth something to you. Who knows when the next approved buyer will come along?

2. Have the buyer make up the difference

In some cases, the buyer will have enough cash on hand to cover the difference between the appraisal and the selling price at closing. If the buyer feels confident that the value is there for her — despite the appraisal — she can simply add cash to the down payment, and the lender should be satisfied.  

3. Meet in the middle

If both parties still want to save this sale, it could make sense to split the difference, with the seller dropping the price a bit and the buyer adding cash to the down payment.

This solution depends entirely on the relative willingness and financial positions of the two parties. Remind yourself this is a dance, not a cage fight.

4. Challenge the appraisal

This option is a bit of a long shot. Only the appraiser’s client, the lender, can demand a review of the appraisal. As the seller, you can support the buyer in this effort by sharing the competitive market analysis that you received from your agent. If the lender does not have a compelling reason to doubt the appraisal, then that tends to be the end of the line. 

5. Put the house back on the market

Let the deal fall through and put the house back on the market. There are more offers out there. If the buyer will not put more money down, and you are disinclined to reducing the price, move on. There are more fish in the sea.

This can be disappointing to everyone involved. But if you are in this situation because multiple offers brought the offer price above the asking price, then it might not be a bad way to go. You could receive a cash offer when your agent relists the home. In that scenario, the appraisal won’t be an issue. Plus, even without the cash offer, another lender’s appraiser could have a more favorable point of view.

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On the downside, remember when scrapping your deal, you are putting yourself that much farther from a closed sale.

This is where your agent is beneficial. Your agent understands what the market is doing and can clarify your options so you can make the best decision for that moment. But, of course, you might also have other options, as rules vary from lender to lender and from state to state.

6. Stay calm

Stay calm and rock on. The most challenging tactic is also the most simple — above all, stay calm, look at the facts, and let your agent do the negotiating. You can not know your buyer’s mind, so keep a cool head and remember everything works out in the end.

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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

11 Reasons Why Home Sellers Fail Their Inspections

How to Pass a General Home Inspection #homeinspection | Blog Video

While homebuyers are as individual as the homes they plan on purchasing, one thing they share is a desire to ensure that the home they will call their own is as good beneath the surface as it appears to be.

A home should have a minimum of 100 amps service, and this should be clearly marked. Wire should be copper or aluminum. Home inspectors will look at octopus plugs as indicative of inadequate circuits and a potential fire hazard.
Will the roof end up leaking? Is the wiring safe? What about the plumbing?

If you hear the sound of running water, it indicates that the pipes are undersized. If the water appears dirty when first turned on at the faucet, this is a good indication that the pipes are rusting, which can result in severe water quality problems.

Insufficient insulation, and an inadequate or a poorly functioning heating system, are the most common causes of poor heating. While an adequately clean furnace, without rust on the heat exchanger, usually has life left in it, an inspector will be asking and checking to see if your furnace is over its typical life span of 15-25 yrs. For a forced air gas system, a heat exchanger will come under particular scrutiny since one that is cracked can emit deadly carbon monoxide into the home. These heat exchangers must be replaced if damaged – they cannot be repaired.

These, and others, are the questions that the buyers looking at your home will seek professional help to answer.

According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspec- tion. We’ve identified the 11 most common of these and, if not iden- tified and dealt with, any of these 11 items could cost you dearly in terms of repair.
An inspector will check your walls for a powdery white mineral deposit a few inches off the floor, and will look to see if you feel secure enough to store things right on your basement floor. A mildew odor is almost impossible to eliminate, and an inspector will certainly be conscious of it.

In most cases, the home seller can make a reasonable pre-inspection in advance if they know what to look for. And knowing what you’re looking for can help you prevent little problems from growing into costly and unmanageable ones.

According to industry experts, there are over 33 physical problems that will come under scrutiny during a home inspection when your home is for sale. A new report has been prepared which identifies the most common of these problems, and what you should know about them before you list your home for sale.

Whether you own an old home or a brand new one, there are a number of things that can fall short of requirements during a home inspection. If not identified and dealt with, any of these 11 items could cost you dearly in terms of repair. That’s why it’s critical that you read this report before you list your home. If you wait until the building inspector flags these issues for you, you will almost certainly experience costly delays in the close of your home sale or, worse, turn prospective buyers away altogether.

In most cases, you can make a reasonable pre-inspection yourself if you know what you’re looking for. And knowing what you’re looking for can help you prevent little problems from growing into costly and unmanageable ones.

To help homesellers deal with this issue before their home is listed, a FREE report entitled “11 Things You Need to Know to Pass Your Home Inspection” has been compiled which explains the issues involved.

Order this report NOW to learn how to ensure a home inspection doesn’t cost you the sale of your home. Fill out the online form: | LOFT INSPECTORS LIST REQUEST

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, BRE 01889449, MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.