Home Selling in Anchorage: What to Do with a Low Appraisal
by Dan Wolf
on Wednesday, May 20th, 2015 at 7:26am.
It’s exciting to receive an offer when home selling, but what do you do when you get an appraisal that’s too low? Your Anchorage Realtor will guide you on the best listing price, but sometimes an appraiser doesn’t agree with the agreed upon sales price. According to a recent article by usatoday.com, rising home values and limited inventory could be to blame for low appraisals. In some cases, a buyer can put more money down so the seller still gets the full asking price. A lot of first-time homebuyers simply don’t have the extra money. If they can’t get a loan for the sales price, they have to walk away from the real estate deal.
• Preventing the dilemma
If you are proactive, you will save time when home selling in Anchorage, Alaska. It’s a good plan to hire an appraisal before you set the listing price so there aren’t any surprises. Your Realtor can fill the appraiser in on any details and information about improvements you have made to the home that could increase its value.
• Asking for a review
According to usatoday.com, federal law mandates lenders give you the appraisal request within 30 days. Your Realtor will evaluate the appraisal report to find out if the appraiser missed something. If you want to move forward with an appraisal appeals process, the lender will pursue a “reconsiderations of value.” By the time you have a second appraisal done for you comparison, the values will likely be higher in the booming real estate market in Anchorage.
• Negotiating the deal
The next step when a low appraisal stands even after an appeal is to negotiate with the buyer or take back up offers. Experts say there is pressure on buyers to pay the contract sales price and the appraised value difference. If one buyer walks away, you could do well to work with another buyer. Ideally, having an all-cash buyer who can pay the agreed upon contract price is the best scenario. If you do decide to negotiate with a buyer, consider offering incentives such as leaving the lighting fixtures, furniture, drapes and art work they like. If they don’t have to buy a lot of furniture, they can likely afford to pay more toward the down payment.
At Wolf Real Estate, we negotiate the best real estate deals for our clients in Anchorage, Alaska. For more tips on home selling while the market is strong, please contact us at 248-9653 or visit us online at www.anchoragehomesearch.com