How to avoid a “deathmatch” between market value and appraised value?
Do your homework. Look at what has sold or is under contract close to the subject property. I prefer to look at the past 90 days while staying within a one mile radius, two hundred square feet +/-, ten years +/- of when the home was built and the same number of beds and baths. Value adjustments can be made with upgrades such as granite, tile roof, type of hurricane shutters etc.
If appraised value comes in lower than contract price you can:
- Dispute the value by providing comparables that support contract price
- Seller agrees to lower the price to appraised value
- Buyer pays the difference between appraisal and contract price
- Seller and buyer split the difference
- Buyer cancels the contract
The last thing anyone wants to hear is that the appraisal came in very low on the home you are either selling or buying. No one wants to sell their home for far less than what it is worth (what a ready, willing and able buyer will pay) nor does anyone wish for someone to overpay for a home.
© Danielle Sharp | Sharp Homes Realty | firstname.lastname@example.org | Deathmatch: Market Value vs Appraised Value