Dealing with a Low St. Louis Home Appraisal
You’re selling your home, and you’ve accepted an offer from an interested buyer. Now you’ve had your St. Louis home appraisal only to get a nasty shock. The home appraiser says your St. Louis home isn’t worth as much as what you’re asking for it, and now the bank doesn’t want to give the buyers the loan for the home. What do you do?
Multiple offers can give up the price of a home, but what do you do when you have to come down from a higher number?
Before you start panicking, there are a few things you can do. Here is our guide on how to deal with a low St. Louis home appraisal.
Bring the Price Down to the St. Louis Home Appraisal Price
You may love that higher price, but the easiest way to manage a low St. Louis home appraisal is just to come down to that appraisal level. It may be hard knowing that the buyer was willing to pay so much more, but this is the quickest way to move past the St. Louis home appraisal and keep the sale going.
Encourage the Buyer to Add More Cash
If you’re lucky, your buyer will have a little more cash on hand and will be able to contribute to the difference. This means that the bank won’t have to loan that extra amount, and the buyer’s loan will remain unchanged. You, however, will still get the agreed price of your home, and everyone will be happy.
Find a Middle Ground
Some buyers don’t want to pitch in all that money if the house just isn’t worth it. To compromise, you can suggest that you and the buyer split the difference. You might lower the price to be close to the appraisal value, and your buyer might chip in the rest with a cash offer to the down payment.
While this is a great way to go for the seller, it does require willingness from the buyer, which means the buyer needs to have a good reason and the financial means to chip in more money. With some buyers, that just isn’t possible, so keep your buyer’s financials in mind when considering this option.
Get the Buyer to Challenge the St. Louis Home Appraisal
If you do truly feel that your home is worth more than the appraisal and the comps back you up, then you can ask your buyer to get a review or a second St. Louis home appraisal. Sellers don’t usually have much power here, so all of this must be done through the buyer.
Getting an appraisal, however, does cost money, and there’s no guarantee that the other St. Louis home appraisal will be higher than the first one. If your buyer is skeptical, offer to split the cost of the appraisal. That should be enough to convince the buyer.
Remember, the lender will decide if a second appraisal is necessary, and they’re usually unwilling to grant a second one. You must show very compelling evidence that the first appraisal is low or incorrect.
Start All Over
In some cases, you may have to bite the bullet and start from the beginning. A deal that falls through can be disappointing for all parties, but it’s not the end of the world for you. If you bring the house back to the St. Louis market, there’s a chance you might get a cash offer or better for your home.
With a cash offer, you don’t need an appraisal because the bank won’t be giving out a loan. This works for both parties.