What happens if you’re selling your house and the appraised value comes in lower than the purchase price? You can choose from one of these three courses of action.
If you’re selling your home and the appraised value comes in lower than the purchase price, what should you do?
This is common in the Las Vegas market because of how much home values have appreciated. Appraisers don’t take our low supply, high demand, and appreciation into consideration when appraising a home’s value. They only look at the most recent sales within the area.
As a home seller, you have three options:
1. We ask the buyer to come up with the difference in cash out of pocket. This is ideal for the seller because it keeps the deal together and gets you the same amount of money as you expected from the beginning.
2. The seller can lower the sales price to the appraised value. In this case, you will net less money, but if you’re really motivated to keep a deal together and move, this might be the best solution.
3. We can renegotiate the deal and meet the buyer halfway. Meeting halfway means the buyer will come up with some cash for the difference and the seller brings the sales price down a bit. We can also renegotiate to have the buyer pay some or all of the closing costs.
If you’re thinking about selling your house and you’d like to know what it’s worth in today’s market, give me a call or send me an email. I’d be happy to help you.