Blog > How to Deal with Appraisal Issues
I’m coming to you today from busy Las Vegas Boulevard to discuss an important topic: how to deal with issues that arise from an appraisal.
In this market, as prices are soaring, a lot of properties aren’t getting appraised based on the pace of appreciation. Because we have huge demand and low inventory, a lot of these properties are selling for higher than what they are worth, therefore, they’re not appraising.
This has been a very challenging situation with a lot of listings and buyers as well. What happens if a property doesn’t appraise? There are a few different ways to deal with the issue:
- The buyer and seller meet halfway. This is assuming that the buyer has enough out-of-pocket money to cover the difference in cash.
- The seller could go down to the appraised value. Unfortunately, even though the demand is there, the seller may have to come down to the appraised value to make the deal and close successfully.
- The buyer can cover the difference in cash. That’s only if they have the money to do so and if they can’t give up on that property. Many buyers are doing that because they know that inventory is low and that prices will continue to escalate. It’s just a matter of the appraisal value catching up to the demand and for the prices to be equal with the appraised value.
If you have any questions about selling or buying a home, please feel free to reach out to us. We’d be glad to help you.