Learn how to handle a low appraisal, and how to prevent this in future sales.
It happens to most agents sooner or later. Everything seems to be going along smoothly with your sale, and then you get the bad news: the home didn’t appraise out.
We all wonder how this can happen. After all, isn’t the value of a home demonstrated by the price someone is willing pay for it? And if you’re the seller’s agent, you probably know your market well. You looked at comps and talked at length with your seller before your priced the home. And if you are the buyer’s agent, you probably knew what other homes in the area have sold for and the price of other available properties. So after all that, how did this happen? And what can you do about it?
When an appraisal comes in low, it’s natural for you and your clients to question whether it’s an accurate assessment. And you may be right to question it. But what can you do about it?
Understanding a low appraisal
The best thing to do is to figure out the real reason the appraisal is low.
Once you figure that out, talk with your clients about their options. If you are sure the price is right, then there are many ways you can move forward. If not, you’re faced with a limited number of options in addressing the situation.
Managing the appraisal process
The best agents prevent this situation from ever happening by following an appraisal strategy that plans for potential issues and provides the appraiser with all the information he or she needs to accurately assess the property. These agents also take the time to learn how to understand the process and exert some influence if there is a problem.
Low appraisals happen, and it’s up to you as the agent to keep the deal together and keep clients at ease. Are you confident you can handle a bad appraisal?
Learn what to do when confronted with a low appraisal with the help of AgentEDU's new course, “How to Handle a Bad Appraisal”.
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