What can you do if a home doesn’t appraise in this crazy-hot market?
In the Madison market, inventory is incredibly low. As a result, competition for homes is fierce, and prices continue to rise. When you want to buy a home, the bank or your lender order an appraisal to make sure the house’s true value supports the amount you’re paying for it. This usually isn’t an issue; however, when prices are rising so quickly, homes often don’t reach the agreed-upon price during appraisal. What can you do in this situation to make sure the deal doesn’t fall through?
In our current market, many buyers deal with this situation by skipping the appraisal altogether. They do this by either offering all cash or waiving their appraisal contingency. Unfortunately, this isn’t an option for everyone.
If you can’t waive your appraisal contingency, your real estate agent can help you dispute a low appraisal. The appraised value is supposed to be what the true market value is. If your agent can make a convincing case that the home is worth what you’re paying for it, you can successfully win your dispute.
“Good agents will gather all the available evidence to support your dispute.”
Often, we’ve found that multiple-offer situations are a good piece of evidence to show an appraiser. Home values are increasing rapidly, so the more recent the data, the better. If you can prove that others were willing to pay a similar or identical price for the property, you could win your dispute.
This is a complicated topic, so if you’d like to talk about it, please call or email us. We are always willing to help!