Understanding Appraisals and What to Do If Your Home Doesn’t Appraise for Its Purchase Price

It can be a bit of a surprise if your home turns out to be valued at less than the purchase price offered, but this is the type of thing that can occur in an appraisal situation. While this can change everything from your contract to the amount of your down payment if your home has been appraised at less than you envisioned, here are some options you may want to consider.

Review The Appraisal Contingency Clause

If an appraisal contingency clause is built into the terms of your contract, this means that the terms of your contract can be re-evaluated and re-negotiated if an appraisal happens to come up short. While this is meant primarily to protect the homebuyer against a lower appraisal, it doesn’t mean that the terms of a new deal can’t be met for the good of both parties.

Get A Second Appraisal

It’s entirely possible that the initial appraisal is accurate, but it doesn’t necessarily hurt to get a second opinion in the event that the first appraisal seems too low. While you can work in conjunction with your lender to get a second appraisal, you may need to pay for it the second time around in order to get your initial purchasing price. Whether it happens to be good news or bad news, it can be worth the peace of mind to know how to proceed.

Consider A Lower Price

It’s less than ideal when your home is appraised for less than the purchase price, but this doesn’t have to be a deal breaker when it comes to selling it. While you may be able to get away with a higher price for your home in a hot real estate market, if things have cooled off, this can be an important time to re-negotiate the deal you’ve got. If a potential buyer likes your home and has already made an offer, they may be happy to decide on new contract terms.

It can be quite disappointing if your home is appraised at a value that is less than the offer you’ve received, but this doesn’t necessarily mean that you’ll have to put your home back on the market. Whether you and the potential buyer decide to re-negotiate or get a second opinion, there are options that can be beneficial for both parties. Give me a call with any questions – J.P. Cook – 602-320-4253.

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22854 N 126th Lane Sun City West, AZ 85375

$459,990

4 Beds

2 Baths

1,832 SqFt

Status Active

MLS # 6671311

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available by May 2024! The expansive great room of the Mason is perfect for watching the big game with friends. Espresso cabinets with white/grey granite countertops, wood-look tile flooring with multi-tone carpet in our Elemental package. Last chance to own at Camino Crossing in Sun City West. With convenient access to the Loop 303, this community provides easy access to schools, major employers, shopping, dining and entertainment. Your family will love spending time at the community park complete with a playground, corn hole and ramadas. We also build each home with innovative, energy-efficient features that cut down on utility bills so you can afford to do more living.*

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21571 W Papago Street Buckeye, AZ 85326

$459,990

4 Beds

3 Baths

2,012 SqFt

Status Active

MLS # 6671550

Property Type Single Family Residence

Price Type --

Spacious Larkspur plan that has 4 bedrooms, 3 baths. It has a 12x8 sliding glass door off the great room. Stainless steel electric appliance package with microhood. Tahoe Maple Boulder cabinets throughout the home with 42'' kitchen uppers and a pull out trash drawer with two bins. AZT Granite Bianco Typhoon in kitchen with a stainless steel single bowl kitchen sink. Upgrade flooring includes EMS Solara Yaris 20x20 in all areas of the home except bedrooms and closets. Dual sinks at bath 2, soft water loop, garage door opener two remotes, 8' tall garage doors for those high profile vehicles, garage service door for easy access into the backyard and more. Estimated completion in May.

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2415 E Cy Avenue San Tan Valley, AZ 85140

$459,990

4 Beds

3 Baths

2,219 SqFt

Status Active

MLS # 6678746

Property Type Single Family Residence

Price Type --

New Construction!! Nestled perfectly in the sought after city of San Tan Valley. Adorable 4 bedroom 3 bathroom single story home with guest retreat and a 2 car garage that has extra storage! Ashton Woods offers a spacious owner's suite, stainless steel appliances, quartz kitchen countertops and classic white and shaker style cabinets makes this a place to call home. This home has been upgraded additionally with backsplash, hardware, faucets, and an upgraded single basin sink! Conveniently located off of Combs Rd and Schnepf Rd. As with all of our homes, this one is also constructed as ''Energy Star'' for remarkable comfort, energy efficiency and environmental sustainability!

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41090 W Haley Drive Maricopa, AZ 85138

$459,990

3 Beds

2 Baths

1,987 SqFt

Status Active

MLS # 6594869

Property Type Single Family Residence

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QUICK MOVE-IN!!! It's our beautiful Belice - 3 bedrooms + flex space, 2 baths and a 3 car tandem garage. 12'x8' sliding glass door off the extended covered patio. Large walk in shower at owner's bath with EMS Casino Ice gloss in a 4x16 tile at shower surrounds . Stainless steel gas appliance package with undermount single bowl sink. Winstead Maple ''Cafe'' stained cabinets through out the home with 42'' kitchen uppers and rollouts at pantry. Himalaya white granite countertops in kitchen and on the enhanced kitchen island. Kitchen backsplash has a 4x16 Ice Matte tile. Flooring includes EMS 12x24 Baccarat Astra tile in all the areas of the home except beds/closets. Dual sinks at bath 2. Two-tone interior paint ''Agreeable Gray'', soft water loop and so much more. Seller to write contract and to verify all information with onsite agents. Water Company is Santa Cruz Water Company and Sewer is Palo Verde Utilities Company.

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