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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697 E Saddle Way San Tan Valley, AZ 85143

New

$465,000

3 Beds

2 Baths

1,824 SqFt

Status Active

MLS # 6696752

Property Type Single Family Residence

Price Type --

Gorgeous home in a vibrant community with so many UPDATES! The resort-style backyard, installed in the last 4 years, features a stunning pool with an expansive Baja step, lush green, tropical trees, and bushes, plus a shaded patio to cool off on hot days. Inside, the house boasts stylish updates, including wood-look flooring and custom designer elements like stone and wood planks. Fresh paint, renovated kitchen cabinets, and newer kitchen appliances ensure modern comfort. The split bedroom floorplan offers privacy, while vaulted ceilings in the great room create a light, open atmosphere. The neighborhood teems with activity, offering tennis, basketball, and pickleball courts, three heated community pools, and the scenic Johnson Ranch golf course. Shopping and restaurants nearby!

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17625 W Dahlia Drive Surprise, AZ 85388

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$465,000

4 Beds

2 Baths

1,917 SqFt

Status Active

MLS # 6692113

Property Type Single Family Residence

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Beautiful single level home with desirable great room floor plan, 4 split bdrms and extended 3-car tandem garage. Kitchen upgrades include sharp quartz countertops, 42'' cabinets with raised panels and brushed nickel hardware, gas range, island and stainless steel appliances. Other upgrades include 18'' tile in walk areas, surround sound, radiant barrier roofing for energy efficiency, French doors to the patio, and cabinets in the laundry room. The south-facing backyard is easy maintenance, with a built-in grill with fridge and bar, extended patio, gas stub, dog run, and high quality artificial grass. Exterior was painted in 2023, full interior painted 4/2024. Community park with basketball and sand volleyball courts are within walking distance.

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17557 W Summit Drive Goodyear, AZ 85338

New

$465,000

3 Beds

2 Baths

1,715 SqFt

Status Active

MLS # 6697393

Property Type Single Family Residence

Price Type --

Immaculately kept 3 bedroom 2 bathroom split floor plan home with a den in Estrella! This 1715 sq ft home is north/south on a corner lot in cul-de-sac with mountain views while backing up to the side of a single story home for the ultimate privacy. The primary bedroom includes a huge walk in closet with a ensuite bathroom that includes a tiled rain shower, dual vanities, and a garden tub. The home features an owned 5kw solar system, wood plank ceramic tile, shutters throughout the home, upgraded granite, custom front door, and many other great features. When you walk out to the finished backyard you'll notice the huge extended aluminum patio providing shade, a gazebo, artificial turf, custom concrete work, and fire pit area while looking at the mountain views. Also included are two community pools, a clubhouse, lake access, and other amenities. Come see this beautiful home today!

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11333 N 92nd Street Scottsdale, AZ 85260

New

$465,000

2 Beds

2 Baths

1,294 SqFt

Status Active

MLS # 6697373

Property Type Apartment

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**REMODELED DREAM CONDO IN THE HEART OF SCOTTSDALE !** Your perfect set up features: Engineered Wood Flooring, 6-inch Baseboards, Upgraded Carpet in Bedrooms, Custom 2-tone Paint, Shiplap Accent Walls, Recessed Lighting, Luxury Modern Fixtures & Fans, Large Living & Dining Area w/ Fireplace for those chilly nights, Remodeled Bathrooms, Beautiful Kitchen with Quartz Counterops, Upgraded Cabinets, Basin Sink, SS Appliances, Fridge included, Laundry Room w/ additional Pantry Storage, Washer/Dryer included, Huge Master Suite w/ Large Walk-in-Closet & a Dual Vanity in the Master Bath. Private Patio w/additional Storage and view of the pool just steps from your door! **RESORT STYLE LIVING** w/ POOL/TENNIS + CLUBHOUSE & FITNESS CENTER! You are close to Shopping/Restaurants/Golf & 101 Freeway!!

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