So, you’ve found your dream house, made an offer, and gotten a mortgage. But when the appraisal report comes in low, you realize the house isn’t worth as much as you thought it was. What do you do now?
Option 1: Cry in a Corner
First things first, let’s address the elephant in the room. If you’re anything like me, the first instinct when receiving bad news is to cry in a corner. But let’s face it, that won’t solve anything. So, grab a tissue and let’s move on to the next option. How to proceed with a low appraisal.
Option 2: Negotiate with the Seller
If the appraisal comes in short, you can try to negotiate with the seller to lower the price of the house. Of course, this is easier said than done. The seller might be unwilling to budge, and you’ll have to make the tough decision of whether to walk away from the deal or stick with it.
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Option 3: Bring in More Money
If you’re truly in love with the house and don’t want to lose it, you can try to bring in more money to cover the difference. This might mean dipping into your savings, borrowing from a family member, or taking out a personal loan. Just be sure to do the math and make sure this is a financially viable option for you.
Option 4: Explore Alternative Financing Options
If the appraisal coming in low is a recurring issue for you, it might be worth exploring alternative financing options. For example, you could look into a loan program specifically designed for low-appraisal properties, or consider an FHA loan which has different appraisal requirements. Check out your Loan Options HERE.
Option 5: Laugh it Off and Keep Looking
Finally, if all else fails, you can always laugh it off and keep looking. After all, there are plenty of fish in the sea (or houses in the real estate market). You never know, you might just find an even better house that is worth every penny.
In conclusion, a low appraisal report is not the end of the world. You have several options to choose from, ranging from negotiation with the seller to exploring alternative financing options. And if all else fails, remember to laugh it off and keep looking. Happy house hunting!
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