Highlands NC Real Estate, Appraisal Surprises
Appraisal surprises can upset a Highlands NC real estate transaction. While a home purchase does not have to be completely derailed due to a low appraisal it does incite a decision. An appraisal that comes in higher, on the other hand, is great news for a buyer. The important thing is that a contract to purchase a Highlands NC home for sale includes an appraisal contingency.
What does a low appraisal mean?
A low appraisal means that a home is valued less than the agreed-upon contract price. In other words, the contract has a buyer paying more for a home than it is worth. However, when a loan is involved this is especially difficult. In this case, a lender will not back a mortgage based on the contract price but on the appraised value. This means the buyer will have to come to the table with additional funds. Negative equity is not particularly appealing to a buyer of a Highlands NC property.
A low appraisal also opens the door for further negotiation. A buyer might be thrilled if a seller decides to adjust the price of the home. Another option is to request a second appraisal. Regardless of whether there is a loan or not, the appraisal contingency allows a buyer to get out of a contract when it comes in lower than expected. Which is something a buyer should consider if the seller will not reduce the home’s price.
Learn more about Highlands NC real estate
Contact our team at Berkshire Hathaway HomeServices Meadows Mountain Realty today to learn more about buying and selling Highlands NC homes. I welcome the opportunity to update you on the market while answering all of your questions. Let my knowledge and experience serve as your guide to Highlands NC real estate.
Click here to read “Hey, Buyers: These Home Appraisal Tips Are for You” from HouseLogic.