The Aftermath of a Low Appraisal
Here’s what happens after an appraisal comes in low.
What happens after an appraisal comes in below the home’s contract price?
The purchase contract states that the buyer can either waive the appraisal and pay the difference at closing or terminate the contract altogether, and they have three days to notify the seller of their decision. The seller has the right to view the appraisal at that point. They’re also allowed to challenge the appraisal in some cases or ask for a second opinion. If a low appraisal can’t be overturned, the seller can sell at the appraised amount and close or find another buyer.
My team and I study the market extensively so as to minimize this occurrence, but unfortunately, low appraisals sometimes happen. If you’d like to know more about the appraisal process or have any real estate questions at all, don’t hesitate to call or email me. I’d love to help you.