What do I do when my home in The Woodlands doesn’t appraise?
This is a current theme when our market shifts back into a sellers market and home sellers in The Woodlands are stretching the value when inventory levels have reached new lows. As the contract moves towards closing, home buyers that are relying on third party financing to secure the purchase, are faced with the anxiety of…. will the home meet contract price appraisal.
I believe that as a buyers agent it is my duty to let the buyers know before the contract that the appraisal is just an opinion by a third party providing a value that is loan related only, not an opinion of true market value. The true market value is the price that a buyer is willing to pay and a seller is willing to accept. I ask the question to my buyers, “If the home does not appraise in an appreciating market, are you still willing to proceed with the purchase?” Lots of factors here come into play. Lot location, interior amenities, condition of property and nearby schools are just a few of the items that led you towards making the offer for the home. When shopping for the perfect, home sometimes you have to pay a little extra to get the right home for your family. And that is ok.
As a listing agent in The Woodlands, I believe it is my fiduciary duty to get the most value I can for my sellers. In preparing the home for the sale, I want my sellers to go over the property with a fine tooth comb and make their home “stand out” above the rest. The result can be multiple offers and a sales price above the list price. The contract price is just an agreed to position between the buyer and the seller. As a listing agent, when my listing goes under contract and the buyers agents is asking for comps, I ask this question, “What is making your client choose this home over the others that are on the market?” This helps with the negotiations when the independent opinion comes in lower than contract price. Sometimes, the home has more of an emotional value to the buyer. And that is ok.
Just remember, between two parties, if the home does not appraise, there are 3 options.
1. Seller can choose to stay firm on sales price
2. buyer can ask for appraised value to transfer to sales price
3. The parties can negotiate somewhere to the middle.
With the three options presented, what do I do when my home in The Woodlands doesn’t appraise?
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