This is a frequent question that is often asked and especially since it does happen from time to time. Let's face it, a low appraisal can cause difficulties when it comes to buying or selling a home. This is typically true considering that a bank funds a loan only up to the actual appraised value of the property. Potential buyers must then consider whether or not to walk away from a deal or bring more money to the table in order to cover the difference. Here are a few reasons why an appraisal might come in lower than expected.
For example, an appraiser may simply fail to dive deep enough into the neighborhood to produce an accurate appraisal. It is a fact that appraisers rely largely on comps, which are nothing more than the prices that have been recently paid for similar homes in the neighborhood. It should be noted that most appraisers do not normally inspect comps in any great detail. In addition, appraisers may often not expand their search for comps outside of the neighborhood in question. Because Anacortes property comps play such a vital role in getting an accurate appraisal it is important that a broad spectrum of properties be considered.
Premium High-End Landscaping
Equally important is to ensure that unique features of a home are considered in the appraisal. For example, a home that has a stunning water view must be included in the appraisal process. Everything from premium high-end landscaping to a tennis court or pool and other attractive features can have a direct impact on an accurate appraisal. However, some appraisers may not see the value in certain high-end features. In other cases the market simply may be too hot and too active for accurate appraisals to be made. Those who happen to experience a low appraisal may have a few options.
Strike A Fair Deal
For example, it may be possible to appeal the appraisal or even order a second appraisal as required. Working closely with your Anacortes realtor, loan officer and appraiser is the best way to ensure that you are able to strike a fair deal when purchasing a home. Other options include negotiating with the seller if the appraisal does not come in as anticipated. One way to work with the seller is to ask them to reduce the price or split the difference because of the low appraisal. The only other option when dealing with a low appraisal is to simply walk away from the deal. Work closely with your real estate agent in Anacortes to find the best deal on a home in this beautiful island community and know what to expect when it comes to appraisals.
Contact Nicole Haun today by visiting Realestateinanacortes.com and filling out our simple online contact form. We offer access to a wide range of Bow WA multiple listings as well as homes for sale in Mount Vernon Washington and many other surrounding communities.
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