When you sell a home in Macomb County, your buyer’s lender will most likely send and appraiser to determine how much it’s worth. But what if the appraisal comes back low? This guide tells you what to do.
What to Do if Your Appraisal Comes Back Low
Usually, people who want to take out a mortgage loan must pay for an appraiser to value the property they want to buy. Lenders require it because they want to ensure that they aren’t lending someone more money then a home is worth. From the lender’s standpoint, that makes a lot of sense: if the lender over-invests in a property, the buyer is more likely (statistically speaking) to default on payments down the road – especially if the home’s value doesn’t appreciate in the way the buyer thinks it should.
However, appraisals can turn out to be bad news for sellers – such as when the home appraises for less than what the seller is asking a buyer to pay for it.
So what should you do if your appraisal comes back low? Try these tips:
- Ask for a review
- Ask for a second appraisal
- Talk to your REALTOR® about how to proceed
Your real estate agent can give you more specific guidance, but in the meantime, here’s a closer look at each.
Low Appraisal Tip #1: Ask for a Review
You can work with your real estate agent to ask your buyer’s lender to take another look at the appraisal. Sometimes, appraisers miss things – they’re only human, after all. It may be possible to get the lender to ask the original appraiser to reevaluate their decision based on new information (that you and your REALTOR may be able to provide).
Related: What fixtures stay behind when you sell a home?
Low Appraisal Tip #2: Ask for a Second Appraisal
Talk to your real estate agent about linking up with the lender to request a second appraisal. It may be easier than you think – but you do need to know that you may be on the hook for paying for it. Usually, appraisals cost between $300 and $500, so be prepared!
Quick Home Value
Low Appraisal Tip #3: Talk to Your REALTOR About How to Proceed
If you can’t get a fair appraisal and you believe that your home was improperly appraised, there may be other steps you can take. (Improperly appraised, in this case, doesn’t just mean the appraisal came back low; it really refers to discrimination and unfairness.) Those steps may include:
- Filing a complaint with the local fair housing agency
- Contacting the U.S. Department of Housing and Urban Development
- Filing a complaint with the state appraisal board
- Hiring an attorney who understands fair housing laws and how they apply in your situation
Though these steps aren’t going to give you an immediate remedy, they can help ensure that if an appraiser is a “bad apple,” the appropriate steps are taken so what happened to you doesn’t happen to others.
Related: How do you get your home ready for an appraisal?
Are You Buying or Selling a Home in Macomb County?
If you’re ready to find out how much your home is worth, call us at 586-648-1728 or get in touch with us online now. We’ll give you a free home valuation – no strings attached!
If you’re thinking about buying a home in Macomb County, explore the links below to learn about our communities and see listings right now. We update our listings every hour, so you always get access to the newest, hottest homes for sale in Macomb County.
|Armada||Center Line||Chesterfield||Eastpointe||Fraser||Harrison Township|
|Lenox||Macomb County||New Baltimore||New Haven||Roseville||St. Clair Shores|
|Shelby Township||Sterling Heights||Troy||Utica||Warren||Washington|