By Lily Ray Wyss, May 18, 2022
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In a hot real estate market like we have right now, it’s normal for buyers to have to offer significantly over the list price in order to secure a home and get their offer accepted.
While this has become a norm it can cause issues when it comes to appraisal.
The appraiser is a third party who comes in during the transaction to evaluate if the home is indeed worth the price you are offering.
That way if you default on your loan, aka stop paying, the entity lending you the money can claim the property and recoup the money they lent you (remember the disaster that was 2008?).
While most appraisers have caught up to the market and understand that offering at a price significantly above asking can be necessary, sometimes there are cases where the appraiser reports the home to be worth less than what you offered.
When this happens there are a few things you can do:
Bring forward evidence as to why the property is worth what you offered and request the appraiser adjust the price.
Bring the cash forward yourself to make up the difference.
Restructure your loan/downpayment with your loan officer.
Or negotiate with the seller to bring down the purchase price to the appraised value.
Or a combo of all four!
Low appraisals are just another factor in this tough market. The way to avoid the situation or get through them seamlessly is to hire an experienced realtor and loan officer.
If you are in the Portland Metro area we are here and we have your back!
Lily Ray Wyss
Broker | OR
She/Her
I love Portland. This city, and its surrounding areas, in my opinion, are the perfect place to call home. We have the amazing ability to put our toes in the ocean, snowboard, and visit some of the world's best breweries all in one day...
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- T: 971-361-6114
- lily@lilyrayres.com
