An appraisal is an integral part of a real estate transaction, and is important for several reasons. First, if you are financing the property, your loan amount will be based on the lower of the sales price or the appraised value. Second, it helps determine you are paying a fair market value for your home, even if you aren’t financing the property. Unfortunately, homes do not always appraise for the contracted price, which can create quite a sticky situation.
If you are faced with this unfortunate situation, you have 3 options:
- Negotiate with the seller to reduce the purchase price, hopefully to the appraised value
- Increase the amount of money you are putting into the down payment to cover the difference
- Cancel the contract entirely.
At Coastal Outer Banks Realty, we will work with you to tackle any issue that comes along during your real estate transaction, hopefully creating a smooth path to closing. And we won’t rest until you are satisfied. To see the inventory of available homes in the Outer Banks, please visit our website at www.coastalouterbanks.com.