What To Do When A Home Doesn’t Appraise For Purchase Price
Q: Gerald, my nephew won the highest and best offer on a home he and his wife are buying. The appraisal came in lower than their bid price. What can they do? Frank, Tom’s River, NJ
A: Assuming your nephew is not paying cash and is getting a mortgage to buy the home, if the appraisal comes in lower than the purchase price he offered and the seller accepted, his lender will likely decrease the amount he can borrow. As a result, he’ll likely have to pay more $ out of pocket or try to convince the seller to lower his asking price. Sometimes you can have some influence on an appraisal but only before the appraisal is actually done. You can find and provide the appraiser with sold and active comparables to support your purchase price before the appraisal is done. You can certainly try but challenging an appraisal after it has been completed is very difficult and unlikely to change the outcome. Thanks for your question, Frank.
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