Rarely, though not unheard of, a Windsor home will receive an appraisal lower that what a buyer offered on a property. Most experienced real estate agents are often right on when listing a home at a certain price, however, certain market conditions prevail and when this happens, it doesn’t mean that the deal is dead.
A buyer has several choices when the Windsor home they want to buy is valued at a lower dollar amount. Needless to say, this can panic a seller who doesn’t want to lower the price nor go through the entire selling process again. Therefore, the first step for the seller is to make sure the appraiser’s report is free of errors.
Is the square footage correct?
Are the number of bedrooms and bathrooms accurate?
Is the appraiser experienced?
Did the appraiser include pending sale information, which could reflect a higher home price, and/or were comparables used inaccurate?
Your real estate agent should go over the appraisal with a fine tooth comb to make sure there are no mistakes. If there are mistakes, a seller can notify the lender and dispute the report if necessary.
But here are some options for a buyer if there were no errors and the appraisal stands:
1. Ask the seller to lower the price.
2. Make up the difference in cash.
3. Have a second appraisal done.
4. Walk Away
It doesn’t matter if it is a buyer’s market, seller’s market or any market. Low appraisals can happen with a Windsor home regardless of the economic conditions. If your neighborhood has many foreclosures, or the price has been inflated, this can happen. This is another reason why it is important to hire a professional and experienced real estate agent who understands your neighborhood.