What Happens When an Appraisal Comes in Too High or Too Low?
What’s the Question Episode 1. What Happens When an Appraisal Comes in Too High or Too Low?
Welcome back to our Vlog! We started a weekly series of videos to help you understand the buying and selling process. Our first Episode is a discussion regarding appraisals. This video will help answer a question that we get “What happens if the appraisal doesn’t come in with the purchase price?”
“Normally if it’s below market, and there is a loan, obviously there is an appraisal most of the time there is a loan. Then you have a situation when you can go back to the negotiating table, try to get the price down to match. Because the lender, which the consumer doesn’t necessarily know, but the lender is gonna lend, let’s say it’s an 80% loan amount, they’re gonna loan 80% of the appraised value or the purchase price, which ever is less. So if the appraisal comes in low, you can see there’s a gap there.” Steve Ridge
Watch our video to learn more!
Stay tuned for our weekly series launching every Tuesday!