3 tips for Low Home Appraisal? Here’s How Buyers Can Navigate the Situation

Nancy Tannehill

Nancy Tannehill

As a listing agent in the Northern Michigan area’s of Bay Harbor, Charlevoix, Boyne City, Petoskey, Harbor Springs and Torch Lake, my extensive knowledge of the area and negotiating skills gives Sellers the opportunity to get the maximum value for their property. For Buyers, I will search until I find the perfect home and then negotiate the best possible deal.

A home is not a home because of its room dimensions or the color of the walls. It is about how you feel when you walk through the front door. And the way you can instantly envision your life unfolding there. It is about your life and dreams.

I have a love and appreciation for our Troops and Veterans. Being a supporter to organizations such as Toys for Tots and Tunnels2towers. Patriotism, national pride, and love of her country are some examples of her devotions. A lover of all things Michigan, I live in Downtown Charlevoix, with my husband Tavis, our Chihuahua’s Bear, Copper and Dachshund who wishes to remain anonymous (Minnie).

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You found the perfect home. You made an offer, and it was accepted. Everything is going smoothly until you get back the appraisal and it was much lower than expected.

As a buyer, what can you do in this situation?

recent article from realtor.com outlined the different ways buyers can move forward if they find themselves dealing with a low appraisal, including:

  • Get a second opinion. If you think the first appraisal was inaccurate — and incorrectly low — you can opt to order a second appraisal. Just keep in mind that you’ll be on the hook for the fee, and there’s no guarantee that there will be a different result.
  • Negotiate with the sellers. If the home you’re planning to buy was appraised for less than what you agreed to pay for it, another option is to negotiate with the sellers. A low appraisal might indicate that their house might not appraise for enough even if they put their house back on the market and receive an offer from another buyer. The seller may be willing to work with you on the price, rather than risk having the same thing occur a second time.
  • Walk away. If you’re buying a home with a mortgage, the lender will only loan you as much as the home’s appraised value. So, if the home appraises low — and the sellers won’t budge on the price — you might have no option other than to walk away from the purchase.