Highlands NC Real Estate, Appraisal Issues
Appraisal issues can get in the way of Highlands NC real estate transactions. While an appraisal may not be included in every home sale it is always involved if there will be a mortgage. The important thing is to know what your options are when a home appraisal is lower than the negotiated price on a Highlands NC home for sale.
Implications of a low appraisal
A mortgage lender is expecting to lend money based on the negotiated price of a Highlands NC property. When the appraisal is high there is no issue because there is instant equity. When the appraisal is low there is an issue because there is negative equity. This means that a mortgage for the negotiated price will be impossible to secure.
What are your options?
When a low appraisal has taken place you have options. You can request another appraisal if there is any doubt. If the appraisal sticks you can come to the table with more money since the lender will loan based upon the appraised value of the Highlands NC home. You can ask the seller to decrease the negotiated price, or you can walk away from the transaction altogether.
Learn more about Highlands NC real estate
Contact me, Lynn Kimball, today for more information on 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.