Nothing is more disappointing than to have your heart set on a certain sales price when listing your Highlands real estate only to have the appraisal come in too low. Having an experienced Colorado Realtor often prevents the problem of over-pricing a home. However, sometimes an appraiser expresses a different opinion about the market value of your Highlands home. According to an article by mysanatonio.com, banks rely heavily on appraisals so can justify the mortgage amount. If a lender defaults on a loan or goes into foreclosure, the bank wants to sell without losing money. When you want to sell a home in Highlands, but the appraisal doesn’t match your asking price, you have several different options as the seller.
Expect the buyer to pay
One approach is to let the buyer make up the difference between the agreed-upon price and the bank’s appraisal. The buyer can make it up with a larger down payment. Because many Colorado buyers today are extremely motivated and there’s a shortage of inventory, it’s likely your buyer will come up with the money if it’s just a few hundred dollars.
Agree to meet them halfway
If the appraisal disappoints by being too low, agree to meet the buyer half way. In cases when the appraisal comes in $2,000 or more below your asking price, it’s a sign you were over-confident about the value of your home. Most buyers and sellers can come up with $1,000 each to make a deal happen. As the seller, you would lower your price by $1,000, for example, while the seller pays an extra $1,000.
Consider reducing your sales price to the appraised value
If the buyer won’t agree to come up with any extra money to cover the difference between the sales price and the appraised value, you can reduce the sales price to match the appraised value. A Highlands Realtor like me can help you to decide if this is the best choice for you.
Review the appraisal
According to experts, you can’t always trust the appraisal. Your Highlands Realtor will ask for a copy of the report. Your Realtor may find missing facts or errors. After reviewing the appraisal report, your Realtor will ask for “reconsiderations of value.”
For the best outcome when selling your Highlands real estate, it’s best to rely on a reputable Realtor who can handle sticky negotiations in the homes selling process. For help figuring out the market value of your luxury home in Highlands or any neighborhood in Denver or Boulder, please contact a Metro Denver Realtor.