| Getting a low appraisal on the home you want to | | | | on the recommendation of the list price. It's not |
| buy can affect your plans to buy a house and | | | | always an intentional thing so calling the attention |
| upset your budget significantly. Say for example | | | | of the seller to it may actually be helpful for them. |
| you've looked at Wrightsville Beach homes for | | | | Especially if the house has been waiting to get |
| sale and decided to make an offer on a piece of | | | | sold for several months already. |
| Wrightsville Beach real estate that costs $300,000. | | | | 3. Ask the seller to carry a second loan to cover |
| You have $60,000 downpayment which means | | | | the difference - Not all lenders will approve of this |
| you intend to borrow $240,000 from the lender. | | | | so you have to check with them first. In this |
| If the appraisal comes back with a report valuing | | | | situation, the seller can offer to lend you the |
| the house only at $250,000, the bank will just lend | | | | money to pay for the difference, which you will |
| you $190,000, which leaves a difference of | | | | pay in lump sum after closing. |
| $50,000. That's a hefty amount of money. | | | | 4. Pay for the difference in cash - If you have |
| How do you deal with a low appraisal? Here are a | | | | cash lying around to pay for the difference and |
| few suggestions: | | | | you really, really want the house you are looking |
| 1. Ask for the lender to appraise the house again | | | | to buy, then it may be the best solution to just |
| - Since the people who appraise the value of the | | | | pay for the difference in cash. At least you'll be |
| house are not infallible, you can ask the lender to | | | | dealing with lower interest payments because the |
| have the house reappraised (of course you'll need | | | | principal is not as high as you initially projected. |
| to pay for it again) especially if you're confident | | | | 5. Consider other lenders - If you really want to |
| that you should have gotten a better appraisal. | | | | stick with the house you picked and you are not |
| It's important to understand though that there are | | | | happy with the appraisal, you can choose to go |
| many things that could affect the appraised value | | | | with other lenders, although this will take up a lot |
| of a house and professionals can usually what you | | | | of your time and make the house sit longer in |
| can't about it. | | | | escrow. You'll risk having the seller issue a notice |
| 2. Ask the seller to lower the price - Sometimes | | | | of action because you can't logically expect them |
| when the appraisal comes in as significantly low, it | | | | to take the house off the market too long just |
| could mean that the house may be overpriced. | | | | so they can wait for you to get a lender who |
| Sometimes a house is overpriced because there | | | | would make a favorable appraisal. |
| are a lot of people making an offer on it. It | | | | When you get a low appraisal, it's not the end of |
| wouldn't hurt to ask the seller to lower the price | | | | the world. Worst case scenario, you wait a while |
| because of the appraisal you got. Sometimes a | | | | for the value of the house to increase or you |
| house is overpriced because there was an error | | | | look for a different house to buy. |