It’s not uncommon for home appraisal values to come in below the original asking price. Appraisals are an unavoidable part of the home selling process and meant to be beneficial to the buyer and lender. However, they can be a huge headache when the numbers don’t match up.
Let’s learn more about what an appraisal is and the reasons why it might come back lower than expected.
What Is an Appraisal? Why Might It Come Back Low?
Appraisals are unbiased professional opinions of a home’s value. They protect buyers and lenders by making sure they don’t pay too much for a home.
The process starts when the lender hires an appraiser to evaluate the interior and exterior of the home. Appraisers look at a variety of factors to determine a home’s value, including its condition, size, location, upgrades, needed repairs, age and construction.
During the appraisal process, your value might come out lower than expected. The reasons why this might happen are:
- Declining market values
- Artificially inflated prices
- Overpricing by the seller
- Property is not well-maintained
- Foreclosures and short sales in the neighborhood
- Incorrect valuation by the underwriter
What Should You Do When Your Las Vegas Home Appraises for Less?
When you’re selling a home in Las Vegas, the last thing you want is to get stuck on the appraisal. But it happens, especially in this market. A few hundred dollars probably won’t be a big deal, but a few thousand can be. Here are some of your options:
Depending on the competition for the property, you may be able to negotiate a deal. In this market, some buyers have had to pay the difference on the appraisal. So, if your house is in demand, try negotiating something with the buyer.
Appeal the Appraisal
Another option is to appeal the appraisal. This is not as easy as requesting a new appraisal, however. You’ll need proof and data to back up your reasoning. Appealing usually only happens when there’s inconsistencies in the report.
Pay More or Make up the Difference
If the buyer really wants the home, they can always pay the difference. Although the house may be worth less in the appraiser’s eyes, it might be worth paying a little more to the buyer. Again, this only works if your home is in demand.
The buyer can also make the decision to switch lenders, providing they have a good financial history. This is not easy to do, and it will slow down the process. Switching lenders can result in a better appraisal the next time around, but it certainly doesn’t have to. Plus, you’ll be sitting on your home while the buyer finds new financing.
Skip the Appraisal and Sell Your Home for Cash!
If your Las Vegas home has appraised for less than you wanted, or you feel that it will, there are ways to fix this headache. Sell your home for cash! The cash buyers at We Buy Any Vegas House will pay cash for your home – we do NOT need financing. Because of this, we can skip over the appraisal and close on your home in just seven days. Contact us today for your free cash offer.