Yes. Here’s the thing – appraisals are lagging indicators and, as such, their values are behind the “market” which makes it difficult for buyers who are willing to pay “market prices” and sellers that want to sell at “market prices”. As you can imagine it is very discouraging for sellers to get their property under contract at a great price only to have the deal unravel because of a low appraisal.
How to deal with low appraisals
The thing is – deals don’t have to unravel and the can stay together if:
Your realtor can help validate the sales price. Appraisers are tasked to determine the “true” value of a property and good appraisers use all the data and help they can get to determine that price including input from the listing agent as to how they determined the list and sales price.
Your realtor is a great negotiator. Just because an appraisal comes in low doesn’t mean the property isn’t worth the agreed on price and/or the deal has to die. Sometimes it simply means the appraisal came in low and we simply need to keep the buyer comfortable with the “agreed on sales price” and keep moving toward a successful closing.
Your realtor is a fighter. It drives me crazy when an appraisal comes in low and a realtor says, “Well it wasn’t meant to be.” Wrong! If you got to the point of agreeing on a deal – then the deal is meant to be and your realtor better be prepared to fight to get a successful outcome for you.
Appraisals are going to be an issue that you will have to deal with as we negotiate higher and better prices so you are going to want a really good realtor to help navigate this field of land mines.
About The Author
My name is John Moran – I am the Team Leader for Keller Williams Realty’s At The Beach Team. My team and I are committed to doing the very best we can to get you the greatest return for your real estate investment and will strive to help you maximize your position whether you are a buyer or a seller.
I hope this information is helpful for you and if there is anything I or any of our team members can do to help you in the future please do not hesitate to call or text me at850-217-7618, or email me at JohnMoran@AtTheBeachTeam.com
Note: Keller Williams Realty’s At The Beach Team sells more condos from Panama City to Pensacola than any other Realtor or team of Realtors – by double! The At The Beach Team also ranks in the Top Ten for combined sales (Houses and Condos).
More Real Estate Tips Like These
If you would like to see other tips about buying or selling real estate simply send me an email atJohnMoran@AtTheBeachTeam.com and I will be happy to email them to you. If you would like to receive future tips – we typically send them out once a month – again simply send me an email and I will make sure you get them.
– John Moran