How To Handle A Low Appraisal On Your Delray Beach Home

When pricing our home, much of the bottom line is out of our hands. While we control the maintenance, and the appearance, and do ultimately set the price when listing, that number is likely influenced by a wide range of outside forces. One such entity is the appraiser, who adheres to a strict code of ethics and standards for evaluation. The appraiser's word isn't necessarily the final straw, but it is the educated assessment of a professional specially trained to evaluate your property for this exact purpose. A low appraisal isn't apocalyptic to your home-selling prospects, but it is certainly a blow that must be accounted for. In today's blog, we'll explain some of the ways you can work through a low appraisal on your Delray Beach home.

Wait For A Comp At A Similar Price

Sometimes the best thing to do is do nothing. While inactivity is certainly not the foremost strategy to employ, it doesn't hurt to enjoy your home while waiting for the market to... correct itself somewhat. The best indication of the value of your home, save for the most crucial components of your inspection, are the nearby properties around you. Homes in your neighborhood will often dictate the reasonable range you can expect yours to fall in, with a few thousand added or subtracted depending on the additions, infrastructure, and damage to the property.

Consider A Second Look

Much like you'd seek a second doctor before a big medical decision, a home appraisal is not written into law, and can certainly change. No matter the impartiality of the appraiser, there will always be a human element to your home appraisal, and something that while not wholly incorrect, may be given more weight compared to another appraiser. Regardless of how your home value comes back, it's always good to seek another professional, especially if you address any glaring issues the first appraisal indicated.

Buyer Makes Up The Difference In Cash

In a strong seller's market, a low appraisal might not necessitate a lower value. The freakish changes in price seen in 2020 had nothing to do with the home appraisal value, and everything to do with supply, demand, and the social forces spurring change following the pandemic. The point being, appraisals don't always equal value, and a major difference in numbers may not play out in the market. In the event sellers hold the power, and the buyer is seeking the home, the buyer may need to make up the difference in cash between what the lender provides them and the value they agree to pay.

Be Ready to Answer Any Questions the Buyer or Appraiser May Have

Preparedness is the key to confidence. When the buyer or appraiser has questions, and you have quick, informed, and concise answers, your confidence shows. While you may not obfuscate or change what the appraiser sees at all, you can easily apply context that will settle the nerves of the buyer parties. Think of yourself as your home's PR team, where your job is to be truthful but informative, detailed, yet concise, and show your pride of ownership no matter what the appraiser says.

Consider A Cash Offer

A cash offer might be lower than you're hoping for, but it's paid in paper, not paperwork. An all-cash offer is valuable in part because it cuts out the middleman and simplifies the delivery of payment. For their part, the seller will reap the benefit of a lower total value, saving money but making an up-front payment. Much like many lottery winners choose a much lower lump sum than a periodic delivery, you can choose a cash offer to make things easy on everyone and leave the low appraisal behind.

Cancel And Relist

Just because you've listed your home, doesn't mean you're bound to sell it. There is nothing wrong with choosing to abort your mission and relist at a time when it makes more sense for you, your family, and your bottom line. Your Champagne & Parisi Delray Beach Realtors will always advise you on the best time and potential to sell your home, but as always will carry out your wishes as the client. If you're not rushed to move for a family member, job opportunity, or some other instant lifestyle change, you might as well allow the passage of time to yield the right window to get the best offer for your home. Cancelling and relisting is not the same act as attempting to time the market, but it is a surrender to forces outside of your will for the greater good.

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