San Diego Home Appraisals

Written by Krystin Spellman
Bookmark and Share

After you have located your new San Diego home and put an offer on the table, a new set of processes will begin. You will want to arrange an inspection to determine if there are any structural problems that could threaten the integrity of your offer. Once the inspection results come back acceptable, the last step will be waiting on the appraisal.

Waiting on an Appraisal

Generally speaking, appraisals go well and are usually right on target with the selling price the owner is asking. But what if the appraisal falls short? As difficult as this may seem, try not to panic. Either you or the seller may have another contract that is dependent on the completion of this one, making the low-appraisal stressful news. Try to stay calm, because there are a couple of different solutions to this problem.

The simplest option is asking the seller to reduce the price of the property. If you plan on financing your home through a mortgage, you will most likely have the ability to back out of the deal if the seller is unwilling to budge. In this scenario, the buyer has a great deal of power since the seller will have a difficult time selling it for the same price to another buyer. Because this scenario occurs from time to time, consider including a contingency clause if you are a cash buyer, allowing you to back out of the sale if the appraisal comes out lower then the asking price.

The other less attractive option is for you to put more money down up front, financing less than the appraised amount. Keep in mind, some lenders will not approve a loan on those modified terms. As a result, your best option is to simply negotiate. The owner wants to sell, and you want the house. With a little work, you should be able to come to an amicable agreement.

Bookmark and Share