How to Overcome Appraisal Challenges

Rochester Minnesota Real Estate Podcast with Andy Mulholland

Appraisals have become a bit of a challenge in our market. Here’s how to make them a little easier.

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Buyers and sellers face a lot of different challenges in this market. One area, in particular, has been seeing a lot more challenges than others: appraisals.
The reality is that the state of supply and demand in our market is creating higher sale prices. This is good news for sellers, but it’s also causing some problems. The main issue is the disconnect between some of the sale prices we are seeing the market bear and what appraisers are valuing homes at. Appraisal issues are more common now than ever, and they can ruin transactions. So, what happens when you don’t agree with an appraisal?
You have a few different options. One is disputing the appraisal and potentially asking and paying for a second opinion. You may also be able to renegotiate with the seller or meet them halfway to make up the difference from where the appraisal is and where the sale price was agreed at. You also have the option to walk away as a buyer. We write appraisal contingencies into all of our contracts.
Keep in mind if you’re a seller that if you have an FHA buyer, that appraisal sticks with the property whether they decide to proceed with the sale or not.

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You always have the option to walk away as a buyer.

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Pricing your home appropriately with a pricing strategy that takes into consideration the potential appraised value of your home. With a good agent, you can help avoid a lot of these kinds of issues.
If you have any questions for us or are curious about buying or selling a home, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.