You may be twiddling your thumbs wondering what the results of the appraisal will be. Will you have a high home appraisal? This is what to expect if so.
Buying or selling homes are equally stressful for the parties involved. Home appraisals in South-Central Pennsylvania, an integral part of home sales, are stressful for both the buyer and the seller – both parties have an interest in knowing the actual value of a home. Sellers have to determine their home’s value before they accept an offer. Buyers want to make sure they aren’t overpaying for a home.
These home appraisals can become even more stressful when they come back with a value that you were not expecting. High home appraisals or low home appraisals can both put a wrench into the process. While low appraisals are more common, high home appraisals do happen, and you should be prepared for them.
Why Did I End Up With A High Home Appraisal?
High home appraisals usually happen due to repairs or renovations made after agreeing to a deal. They could happen due to market value fluctuations. Or just because the seller undervalued their property before getting an appraisal.
Now What To Do?
Issues arise when the seller and buyer have already agreed upon a price. Sellers can’t increase their price after a deal has been made as it would be a breach of contract. For the buyers, getting a high home appraisal in Maryland is great news, as the home’s value is higher than the agreed-upon price. So, you might be wondering, “what happens if my home appraisal comes in high?”
As a buyer, if your home appraisal comes high, you should celebrate as you’ll be paying less than the actual value of the home. You’ll still get your home loan at the previously agreed price, and you’ll also get an instant boost in your home equity.
As a seller, there are a few options open to you. The first option is to start negotiations with the buyer. Sellers might be able to negotiate for a better deal if the buyer is willing. But in most cases, a buyer won’t be willing to give up a good deal.
The next thing sellers can do is get a second opinion. Appraisals in Maryland depend on a lot of factors, and there can be mistakes. If sellers believe there has been a mistake, they can get another appraisal done to ensure the value of the home. Appalachian Appraisal Services does second opinion appraisals.
The third and final option is to find a better deal. While sellers can’t directly back out of a contract or deal if they have a provision clause in their contract, sellers can opt for higher offers if they are presented. If there is a higher offer on the table, then the buyer is required to match or go higher. But if there are no other offers, then the seller has to complete the terms of the contract and sell the house.
Home appraisals in West Virginia (and surrounding areas) are incredibly important and most of the time, mandatory. They determine and provide value to everyone involved – the seller, buyer, the lender and the estate agent all benefit from knowing the actual value of a home or property. Please contact us today for more information on getting a second opinion, or if you have questions about the appraisal value that came back.