When purchasing a home, your mortgage lender will almost always order an appraisal to verify the value of the property. The appraisal will ensure the home is worth the value to be able to provide financing options. The lender won’t lend more than the appraised value. Doing so would cause the buyer to be underwater or owing more than what the home is worth.
A low appraisal means the home’s appraised value is less than the agreed-upon offer price. Low appraisals don’t occur too often, but it’s always best to be prepared.
Appraisers are not looking for things to fix, they are concerned with the condition of the home. For example, here are a few specifics that determine the value of your home:
There are options to keep the deal alive if the appraisal comes back lower than expected. Here’s a few to bring up with the seller or your real estate agent.
When making a financial decision this large, it’s best to check in with your local lender to help you understand the current market. We’re here to help!
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