When selling a house, one crucial step is the home appraisal. An appraisal is an unbiased estimate of a property’s fair market value conducted by a licensed professional appraiser. But what happens if the appraised value comes in lower than the agreed-upon sale price? Do sellers lower the price after an appraisal?
Yes, sellers may lower the price after an appraisal. If the home appraisal comes in lower than the agreed-upon sale price, sellers may choose to reduce the price to reflect the appraised value. This is a common practice to keep the transaction moving forward.
FAQs about Sellers Lowering Price After Appraisal:
1. Can a Seller Walk Away After Appraisal?
A seller can technically walk away after an appraisal, but it may result in legal repercussions if they are under contract.
2. Is the Appraisal More Important Than the Inspection?
Both the appraisal and the home inspection are critical steps in the home selling process, but an appraisal determines the fair market value of the property, while an inspection focuses on the condition of the home.
3. Are Appraisals Negotiable?
Appraisals are typically not negotiable, as they are conducted by a third-party appraiser to provide an unbiased opinion of the property’s value.
4. Who Pays for the Appraisal?
Generally, the buyer pays for the home appraisal as part of their closing costs.
5. Can a Seller Refuse to Lower the Price After Appraisal?
While a seller can refuse to lower the price after an appraisal, it may lead to the buyer walking away from the deal.
6. How Can Sellers Prepare for an Appraisal?
Sellers can prepare for an appraisal by making necessary repairs, providing documentation of any recent renovations, and ensuring the property is clean and well-maintained.
7. Can the Buyer Contest the Appraisal?
Buyers can contest an appraisal if they believe it was inaccurate or incomplete, but it’s important to have valid reasons and evidence to support their claims.
8. What Happens if the Appraisal Comes in Higher Than Expected?
If the appraisal comes in higher than expected, the buyer may need to secure additional financing or negotiate a lower purchase price with the seller.
9. Can a Seller Get a Second Appraisal?
Sellers can request a second appraisal if they believe the first appraisal was inaccurate or if they dispute the findings of the initial appraisal.
10. How Does an Appraisal Affect the Mortgage Approval?
An appraisal is a crucial factor in the mortgage approval process, as lenders use the appraised value to determine the amount of the loan they are willing to provide.
11. Can a Seller Demolish a Home After an Appraisal?
While sellers have the right to demolish a home, doing so after an appraisal may have legal implications and could impact the sale of the property.
12. Can an Appraisal Be Challenged?
An appraisal can be challenged if there are valid reasons to believe it was conducted improperly or inaccurately, but it’s a complicated and often lengthy process.