Today I’m sharing five different ways to deal with a low appraisal in today’s market.

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With prices shooting up and multiple offers being commonplace, low appraisals have been a consistent thorn in the side of home sellers and their agents. What recourse do you have if you get a low appraisal that you believe is bad? Running into a low appraisal is like trying to re-negotiate with the ref after they’ve made a call. Usually, they stick to their decision, but it’s important to note that just like Realtors, not all appraisers are created equal. Some appraisers may have limited experience or lack vital local market knowledge.

So, what can you do if you get a low appraisal? Here are five of the most common solutions:

1. Look for mistakes in the appraisal. Double-check things like square footage, number of beds and baths, or how your features were described in the appraisal. If you find a mistake, that can be grounds for a re-appraisal.

2. Ask for a reconsideration of value. Common grounds for an appeal include poor analysis of comparable properties, a disregard of special financing or concessions, or a miscalculation of gross living area.

”Re-listing could lead to a higher appraised value.”

3. Request a new appraisal. This is very difficult because the buyer is responsible for the cost and this can often be the end of a sale.

4. Renegotiate with the buyer. This is the most common solution. The goal here is to find some common ground. Since contesting an appraisal is a fight that is rarely won, working with the buyer is the most common means of keeping the sale together. In the end, remaining firm on the price is entirely up to you as the seller.

5. Re-list the home. Naturally, you’ll be starting all over and taking the chance that you run into another low appraisal, but there’s always the chance that another appraiser will arrive at a higher value.

If you have any additional questions about low appraisals or anything else related to real estate, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.