Options for Home Buyers Facing Low Appraisals from Marc Cormier

POTOMAC, Md. - May 11, 2016 - PRLog -- In today's housing market, it may seem that home buyers are always at an advantage. After finding the perfect home and agreeing to a seller's purchase price, would-be home buyers may be surprised by a low appraisal value for a home, potentially ruining the sale. Since mortgage lenders will only provide funding up to a certain percentage of the appraised value, if the home appraises low, the buyer must increase the down payment amount, renegotiate, or risk losing the offer. However, as Marc Cormier of Tania Ivey Real Estate Group/Keller Williams Realty in Vienna VA notes, potential buyers have options that may help save the deal.

"The first step a buyer should take," Cormier notes, "is to review the appraisal report carefully to check for any errors; mistakes do happen, and under-reporting square footage or listing the wrong number of bedrooms could make a big difference in the market value of the property." Even if there are not any errors, a buyer should check with agents to make sure comparable properties were used in making the appraisal, as there can be variations based on neighborhoods, schools, and city limits. "If there are errors, lets say in a house in Bethesda MD" Cormier states, "be sure to take them to the appraiser to request a revision."

The second option for buyers, especially if the appraiser refuses to revise the report, is to contact the lender directly. "This is a key reason why it's critical to work with professional real estate agents and mortgage experts," says Cormier. "If your agent can convince the lender that there are problems with the original appraisal, the lender will be more likely to approve the second report and adjust the funding amount."

The third option for buyers is to renegotiate the purchase price with the seller, who will also be affected by a low appraisal. If the difference between the purchase price and appraised value is fairly small, the seller may be willing to split the difference, keep the price but include an appliance or repair, etc. "If the difference is large," Cormier points out, "the seller may be even more likely to renegotiate or reduce the price to avoid losing the sale altogether and having to find a new buyer."

A final option for buyers in this situation is to work with a different mortgage company. "A different bank or lender may be more willing to consider a second appraisal of the home or offer a better rate, depending on the loan type," says Cormier. "If you've hired an experienced real estate agent, he or she will help you determine your options and propose alternatives at this stage."

For more information, contact Marc Cormier at cormier64@gmail.com, visit http://www.WeFind.Property or call (301) 660-6272 x 700.