Dealing with a low appraisal value when buying a Del Mar Home
In a real estate transaction once the home buyer and seller agree upon a price and the contractual terms, the home buyers’ focus shifts to financing their new home. While many buyers think that the price of their purchase has been established, they forget that the negotiated price may not always align with the appraised value of the home.
The appraised value is the amount a mortgage lender takes into consideration during the loan approval process. It is not uncommon for a property to be appraised for less than the purchase price. In such cases, the lender uses the lower appraised amount to determine how much loan money they approve.
Real estate transactions are time sensitive and a low appraisal tends to bring the home buying process to a halt. However, there are a few options that can save a transaction when the appraised value comes in lower than the contractual purchase price.
Del Mar Home Buyer’s Options if an Appraisal Is Low:
- Negotiate a lower sales price
- Bring cash to closing to make up for deficit amount
- Both sides can meet in the middle
- Dispute the appraisal with the lender
- Get an appraisal with a new lender
- Cancel the contract
The value of a Del Mar home is still based upon what a home buyer is willing to pay. At Anderson Coastal Properties our experience enables us to aid home buyers in considering their options if an appraisal comes in low. We are here to assist all home buyers in achieving their goal of home ownership.