What Should You Do if Your FHA Appraisal Comes in Below the Contract Price?
You’ve found your dream home, but the FHA appraisal comes in lower than the contract price. Now what? This situation can feel frustrating, but don’t panic – there are options for both buyers and sellers to navigate this hurdle!
💡 1. Request a Price Reduction
One option is to ask the seller to lower the purchase price to match the appraised value. Sellers want to close the deal, and this is often the most straightforward solution. If the seller agrees, you’re all set!
💡 2. Make Up the Difference
As the buyer, you can choose to cover the difference between the contract price and the appraised value out of pocket. This may not always be ideal, but it’s an option if you’re in love with the property and want to move forward quickly.
💡 3. Negotiate a Middle Ground
Another strategy is to negotiate somewhere between the appraised value and the contract price. Both parties may compromise, with the seller lowering the price and the buyer paying a bit extra to meet in the middle.
💡 4. Walk Away or Re-List the Property
If negotiations fail, you always have the option to walk away from the deal (if your contract allows) or, if you’re the seller, re-list the property and hope for a better offer.
🔑 Sellers, if this were your home, what would you do? Price drop? Hold firm? Buyers, if you’re facing this issue, I can help guide you through these negotiations to ensure you get the best outcome possible. Let’s chat today!
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