As the selling process for a home progresses, it’s not unusual for owners to get low appraisals on their homes. Sometimes it happens even though the property hasn’t been listed on the market yet, and sometimes sellers will judge their properties to be worth less than what they can sell them for. You can see more here https://www.revivalhomebuyers.com/.
Here are tips to handling a low appraisal, especially if the property has been listed.
- Have a reasonable asking price
The appraisal may be in the lower range of what you expect to get for your home, but it’s worth remembering that most buyers won’t even view homes that fall out of their price range. Having an unreasonably high asking price will not help you and may make it more difficult to sell.
- Don’t rely on appraisals
Just because an appraiser has declared the value of your home doesn’t mean a reasonable buyer will necessarily see the same value in it. If you have a house that’s in good shape and is located in an area that’s popular with buyers, it will probably sell quickly, regardless of what an appraiser says.
- Set a lower reserve price
If the appraisal report says that your home is worth less than you want to get for it, you may be able to “create” the value by listing the home at a lower price. When buyers are drawn to the property, they may be more inclined to pay more.
- Work with your agent on repairs
The appraisal report may also highlight areas that need repair or updating before the property can be sold at a higher price. If you’re having trouble finding a buyer willing to pay your asking price, you may want to consider investing into some of the recommended improvements to increase its value in the eyes of buyers.
- Communicate and negotiate
The agent or seller’s agent who handled the listing of your home should have an idea of what the likely selling price will be, especially if you’re selling through a real estate agent who has access to buyers. You may even want to ask for a lower price from your agent because you still want to sell quickly. At this point, it’s also important that you and your agent communicate about the steps you plan to take in order to achieve that goal.