Various market conditions can negatively affect the appraisal of a home you’re selling, making the appraised value lower than the sales price you agreed on with a buyer. In a seller’s market, appreciating home prices often make low appraisals a non-issue, but in a buyer’s market, falling prices can lead to your appraisal coming in lower than your agreed upon sales price.
This can be a problem because lenders will only lend on the appraised value. If your appraised value is lower than the agreed upon sales price, you’ll have to make up the difference in cash, or cancel the deal. There’s no reason to panic if your appraisal comes in lower than you expect it to, though. There are several steps you can take that may keep your deal from falling through. Read on to find out what options you have in the event of a low appraisal. [Read more…]