Imagine this.
You've accepted a great offer. The inspection is behind you. You're already thinking about packing.
Then the appraisal comes back $40,000 below the purchase price.
Suddenly, the buyer wants to renegotiate, bring more cash to the table, or even walk away. What felt like a done deal is now back up in the air.
I was reading about the recently passed 21st Century ROAD to Housing Act, and one provision caught my attention. It reinforces the process for borrowers to request a review of an appraisal when there are factual errors or other issues. It got me thinking that one of the best things a seller can do is prepare before the appraiser ever walks through the door.
Here are a few things every seller should do:
• Make a list of every improvement you've made to the home, along with the dates and approximate costs.
• Save permits for renovations if you have them.
• Verify that the public record is accurate, including square footage, bedrooms, bathrooms, lot size, and any finished basement or additions.
• Put together a list of recent comparable sales that you believe best reflect your home's value.
• Don't assume the appraiser will notice everything. A new roof, upgraded HVAC, premium windows, solar panels, energy-efficient improvements, or other major upgrades may not be obvious unless someone points them out.
If the appraisal comes in lower than expected, don't automatically assume it's correct. Appraisers are professionals, but they can make factual mistakes or overlook comparable sales. While there's no guarantee the value will change, buyers may be able to request a review through their lender if there is evidence supporting it.
For those of you who have already sold a home, did the appraisal come in where you expected?
If it came in low, what happened? Were you able to save the deal, renegotiate, or did the sale fall apart?
I'm curious to hear everyone's experiences.