You have agreed on a purchase price and ready to move forward with this deal, but you are anxiously awaiting the appraisal to return and it comes in low, what do you do from there?

• Renegotiate the Purchase Price

Usually this is the better option, the seller can lower the purchase price to what the appraisal came in at and the buyer is still happy. If the seller does not lower the purchase price and went with a different buyer, it is likely the appraisal would come in low again.

• Order a Second Appraisal

Sometimes each appraiser has a different view on what the appraised value should be depending on the local market. It could come in higher depending on which comps the appraiser uses.

• Supply a List of Comparable Sales

Ask the agents of the sale to put a list of comparable sales to justify the agreed sales price and ask for a review of the appraisal.

• Cancel the Transaction

The sellers do not want to sell the property at the lower appraised value and the buyers do not want to purchase the property at a higher sales price than the appraised valued. The buyers are able to walk away from the sales contract and look for a different property.