Are you trying to sell your Utah house? You may have an ideal price point that you’d like to get from the sale, but you’ll most likely need an appraiser to determine what your home is really worth. Although it’s not uncommon for a home appraisal to come in lower than the original asking price, it can be very frustrating to find out. So what can you do when the numbers aren’t matching up? Here is what to do when your home appraisal comes back lower than expected.

What Is a Home Appraisal?

According to Investopedia, an appraisal is an unbiased professional opinion of a home's value. It is conducted as a way to protect both buyers and lenders so that they’re not paying too much for a home. 

The way it works is that a lender will hire a professional to come in and do an evaluation of the home’s interior and exterior. They will look at several factors, including the size, location, upgrades, and condition of the home. They will also note if there are any repairs that need to be made. From there, they will send you a report of how much they think your home is worth. The process of this generally takes about a week, or up to a month depending on the appraiser’s schedule and how busy the real estate market is. 

Reasons for a Low Home Appraisal

Once the report comes through, you may be disappointed to find that the value of your home is lower than you were hoping. There can be many reasons for this, which may include the following:

• Inflated home prices
• Decline in market values
• Unknown foreclosures in the neighborhood
• Incorrect valuation of the home
• Home maintenance issues

 

What to Do When Your Utah Home Appraises for Less

The big question is what should you do when your home appraises for less? There are several options to take, but here are a few suggestions.

• Appeal the Appraisal 

Appealing your appraisal is not an easy process, but it can be done if there are inconsistencies shown throughout the report. You need to make sure that you have reasonable proof to back up your reasoning for the appeal. 

• Make Repairs and Request a New Appraisal

Another approach is to make repairs on your home and request a new appraisal to see if it will be higher. Depending on the extent of the renovations, this may be worth it and it may not. Be sure to weigh the pros and cons before making this decision.

• Negotiate with the Buyer

If you have an interested buyer, you may be able to negotiate a deal with them. This all depends on how badly they want the house. If they are super interested, they may be willing to pay the difference on the appraisal. 

• Switch Lenders

A buyer may have the option to switch lenders, but this depends on their financial history and can slow down the process, leaving your home sitting on the market. If the buyers switch lenders, they may have a better home appraisal the next time around, but it is not guaranteed. 

• Sell to a Cash Buyer

If your home appraisal comes back lower than expected, and you don’t want to deal with the above options, the best thing to consider is selling your house to a cash buyer. Enlight Homebuyers does not need financing, which means that we can buy your home fast for cash. You can skip the appraisal process altogether and sell your Utah house in as little as a week.

Interested in learning more? Give us a call at 801-939-0123 or fill out the form below.