In this installment of our First-Time Home Buyer Q&A Google Hangout (that never ceases to be a mouthful), the experts are asked about appraisals: What are you supposed to do when, after you make an offer on a home, the home is appraised for less than your offer?
Is the Appraisal Correct?
While throwing your phone at the wall, binge-drinking and making rash vows of vengeance aren’t necessarily off the table, there are a few more productive, albeit less cathartic, options open to you if you find yourself in this situation.
If you believe the appraiser missed or incorrectly recorded information, you can appeal the appraisal, but you can’t go to the appraiser to do it. There are strict guidelines to make sure interested parties can’t influence an appraisal; you have to go to your lender to challenge the appraisal.
You or your real estate agent can also check with the seller to find out what, if any, comparables were used in coming up with the listing price – maybe the home was listed too high to begin with.
How Much Is It Worth to You?
Of course, if this is your dream home we’re talking about, then maybe it’s worth it to you to bring the extra cash to the table to make up the difference.
So, before you stress out too much, take some time to research the situation and figure out your options. Check out the full video below for more information and let us know your comments and questions!