The one important contingency on any buyer’s offer is the appraisal contingency. It says that if the home doesn’t appraise for what you’re paying for it, you can walk away from the contract.
If the appraisal comes in low and you don’t want to walk away, you'll either have to come up with the difference in cash or rely on the buyer to lower the purchase price. That might not happen, but it is possible to meet in the middle to make up the difference. If an agreement can’t be reached, you’ll have to walk away and you both end up losing.
For sellers, a good agent is going to be able to prevent this from happening. They should have good relationships with appraisers and know whether a home’s appraisal is going to come in low or not. We do homework by looking at the same comparables that the appraiser is looking to justify the value of the home.
Another thing we do is let the appraisers know how many offers have come in on the home. The added information helps prove the home’s value. I will also contact other agents who have homes listed in the area to further justify the value.
When the appraiser comes out, I always make sure to walk them around the house, point out the highlights of the home, and hopefully get a good appraisal. After it’s done, I’ll recap everything and email the appraiser with all of my information to help them do their job much better.
If you have any questions for me about appraisals or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.