Can you offer lower than the appraised value?

If the appraisal is lower than the home’s price, a lender won’t approve the loan for that amount. For example, if the listing price is $300,000 but it appraisers for $250,000, the buyer now has to come up with the difference.

What makes a home get a lower appraisal?

Homes that are 10-20 years old are much less likely to have a major issue, so anything older than this may get a lower appraisal simply because of the home’s age.

How does an appraiser tell you how much a home is worth?

The appraiser can tell you, the buyer, and your lender how much a home is worth. An appraiser analyzes a handful of factors when they’re tasked with the appraisal of your home. They will consider where your home is located, check the quality and condition of the home’s construction, its amenities and any other special features.

Can a messy house affect a home appraisal?

But sometimes, a messy home indicates a home that isn’t being well taken care of. And clutter may actually hide rot, waste, and water damage. So while appraisers may not consider it in home value, it may add time to the appraisal or raise additional questions.

How long does it take for a home appraisal?

How Long Does a Home Appraisal Take? It can take anywhere from 15 minutes to 10 days or so. Newer homes in good repair are easier to assess, while older homes that may have issues can take longer. Again, cleaning your home may help speed up the process.

What happens if you get a low appraisal on your home?

Appraisers can make mistakes or have imperfect information. Better yet, present a factual case for a higher value to the original appraiser. He or she may agree with you and revise the evaluation. As a seller, a low appraisal, if accurate, means you will have to lower your home’s price to get it sold.

How often do appraisals come in lower than sale price?

Certified general real estate appraiser Mason Spurgeon estimates that about 20%, or one in five appraisals, come in lower than the sale price. Ever wondered whether appraisers know the selling price when they evaluate a home?

What do appraisers look for in an appraisal?

Typically, both appraisers and assessors look for recent sales of homes similar to yours: The average sale price indicates your home’s fair market value. Don’t assume two houses with equal appraised value should have the same taxable value, however — they often do not.

How are real estate appraisers and tax assessors alike?

Real estate appraisers and tax assessors both employ the same methods to figure out what your house is worth. Typically, both appraisers and assessors look for recent sales of homes similar to yours: The average sale price indicates your home’s fair market value.