For those selling a home, the consequences of a low appraised value on your home could include a loss of the sale, but knowing the correct tactics and your options can be important. This is where the services of a Realtor could be warranted, since re-negotiation with the home-buyer will be required. There's a set percentage of appraisal price allowed for a mortgage loan, so financing for the buyer could become an issue.
There may few options, but that doesn't mean that a transaction can't take place. As a seller, a Realtor can use comparable sales to price your home right, which avoids these unpleasant surprises. As a homebuyer, a Realtor can help you find the homes in your price range and show you ones that are priced right, versus ones that are over-priced. Despite these efforts, it's possible the home won't appraise for enough, in today's housing market, due to foreclosure homes selling below market value and these can be factored into the latest comparable sales.
If you have made improvements to your house, those will be taken into consideration on the appraised value of your property. The differences between your house and the comparables' traits will be compared, besides the present age or condition of its components. In other words, you may have more square footage in your house, but a smaller home in better condition, with a new roof could be worth more. Regardless, your real estate professional will help you figure out the next step.
You hate to think about losing a pre-qualified sale, but this is one of the ramifications of a disappointing home appraisal. Unless renegotiations take place, the contract is cancelled. It's possible for the seller to bring their accepted price to appraisal or split the difference with the buyer. Otherwise, the extra cash would need to come from the buyer, who may not have the means to provide it and may not pay more than appraised value, for the home.
Sellers may be faced with the fact that a short sale is inevitable, if they owe more than a home is worth. While this is a lengthier process, your Realtor can offer advice on how best to negotiate these types of transactions. Dealing with your existing mortgage lender is part of the process, but you may be faced with few other choices.
Promissory notes can be written between the buyer and seller, in the case of those sellers that refuse to budge on price and buyers that absolutely want a home they have offered on, regardless. Ultimately, sellers need to make some kind of concession, if they hope to complete any sale of their home, since other borrowers will be faced with a similar outcome, should this tactic not work out.
A Realtor is skilled in treading the "choppy waters" of today's home market in Florida. It doesn't matter whether you're buying or selling a home, it helps to have a knowledgeable professional on your side. Sound real estate advice is needed, when you're faced with the ramifications of a disappointing home appraisal. Since comparable sales are part of the valuation process, foreclosures and short sales make it difficult to anticipate the outcome of the appraisal process, in a number of cases.
There may few options, but that doesn't mean that a transaction can't take place. As a seller, a Realtor can use comparable sales to price your home right, which avoids these unpleasant surprises. As a homebuyer, a Realtor can help you find the homes in your price range and show you ones that are priced right, versus ones that are over-priced. Despite these efforts, it's possible the home won't appraise for enough, in today's housing market, due to foreclosure homes selling below market value and these can be factored into the latest comparable sales.
If you have made improvements to your house, those will be taken into consideration on the appraised value of your property. The differences between your house and the comparables' traits will be compared, besides the present age or condition of its components. In other words, you may have more square footage in your house, but a smaller home in better condition, with a new roof could be worth more. Regardless, your real estate professional will help you figure out the next step.
You hate to think about losing a pre-qualified sale, but this is one of the ramifications of a disappointing home appraisal. Unless renegotiations take place, the contract is cancelled. It's possible for the seller to bring their accepted price to appraisal or split the difference with the buyer. Otherwise, the extra cash would need to come from the buyer, who may not have the means to provide it and may not pay more than appraised value, for the home.
Sellers may be faced with the fact that a short sale is inevitable, if they owe more than a home is worth. While this is a lengthier process, your Realtor can offer advice on how best to negotiate these types of transactions. Dealing with your existing mortgage lender is part of the process, but you may be faced with few other choices.
Promissory notes can be written between the buyer and seller, in the case of those sellers that refuse to budge on price and buyers that absolutely want a home they have offered on, regardless. Ultimately, sellers need to make some kind of concession, if they hope to complete any sale of their home, since other borrowers will be faced with a similar outcome, should this tactic not work out.
A Realtor is skilled in treading the "choppy waters" of today's home market in Florida. It doesn't matter whether you're buying or selling a home, it helps to have a knowledgeable professional on your side. Sound real estate advice is needed, when you're faced with the ramifications of a disappointing home appraisal. Since comparable sales are part of the valuation process, foreclosures and short sales make it difficult to anticipate the outcome of the appraisal process, in a number of cases.
About the Author:
About the author: Lance Mohr is an authority on the Tampa real estate market with more than 19 years of experience as a Realtor and mortgage banker. For more information on Westwood Lakes homes for sale or Ballast Point homes for sale go to Tampa2Enjoy.com.