With the rapid rise in Colorado Real Estate prices, appraisals are starting to become more and more of a concern as a condition to close. If you are either buying or selling and run into a situation where your appraisal is not at the sales price you have a few options to consider.
1. Dispute the appraisal - have your Realtor submit a list of comparable under contract or recently sold (no older than 6 months) homes that best justify your sales/purchase price. More importantly, find out why the appraiser did not use these comparable homes in their report.
2. Ask your lender if you can get a 2nd appraisal and this time make sure your Realtor, at minimum, educates the appraiser on the home as well as the comparable values in the area. Not all appraisers have the depth of knowledge for each specific subdivision.
3. Lower the price - Seller will have to adjust the purchase price to meet the appraised value.
4. Bring more cash - Buyer will have to come up with the cash difference between appraisal and purchase.
It is important that you have a licensed Realtor working for you to help you navigate this important step in process.
- Denver Real Estate
- Hello - My name is Mike Baker and I am a Denver Realtor and have been practicing real estate in the Denver metro area since 1999. I am posting my blog to provide information to the general public about the changing aspects of real estate and most importantly how it is affecting the local Denver real estate market. If you have any questions or thoughts please dont hesitate to comment on my blog. Also, I am always willing to provide services such as: FREE home evaluations if you are thinking about selling your current property or FREE lists of properties to buyers who are just starting to look (not only market rate but bank/foreclosed options). Let me know how I can help. You can contact me at firstname.lastname@example.org or visit http://www.hotspotrealestate.com and use some of the search tools such as: map search, search by master planned community, neighborhood information and much more... Good Living, Mike Baker