Your home didn’t appraise for purchase price and now the buyer is demanding a price reduction. What are your options?
1. Review & Appeal
On the day of the appraisal, your real estate professional should have been present with a list of the most recent on and off market sales to support the value of your house. Use those to evaluate the appraisal and see if there are errors or inaccuracies, or better comps that could have been used. If so, push back to the bank and have them appeal the appraisal.
2. Hold Your Ground
If you feel very confident that your home has unique features that weren’t valued, or if you don’t have many recent sales in your neighborhood, stand your ground and see if the buyer will come up to your purchase price on the property. If not, you know your next buyer needs to be a cash buyer.
If the next buyer who comes along is going to have the same problem, then drop your sales price to the appraised price of the property or try to renegotiate somewhere in the middle.