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Buying or Selling a home? Uh oh, the appraisal is low!

Hi, I'm Jeff Williams and I'm an associate broker in real estate here in Glynn County on the coast of Georgia. I want to talk to you a little bit about the appraisal process because nothing will put a stake to the heart of a real estate transaction, like a loan appraisal. Now you may come to me and you'll say, Hey, Jeff. What do you mean low appraisal?

Well, think of it like this. You're buyer, you've put an offer in on a house that's been accepted. At a certain point, you're going to have to get your banker involved, and they're going to send over an appraiser to check out the house and make sure that the amount that you're buying the house for is the same as what the bank is willing to lend money on based on the value of the property.

Now, if there's a difference in that, that can create some problems, but there are solutions. A one solution is you can always go to mr seller and say, Hey, mr. Seller, will you lower the price of the property down to the appraisal course? No seller ever wants to hear that. But a, also as a buyer, you can always bring more money to the closing table.

And a new buyer really wants to do that. A really great option though, is for the buyer and the seller to negotiate each, bring in a certain amount of money to the table to make up that difference. So basically you're saying, Hey, I'll bring a certain amount to the table if you'll bring a certain amount to the table, and that's a great solution on the property.

But if that doesn't work and you go to the seller and the seller says, I'm not willing to bring any money to the table and I'm not willing to lower the sales price as a buyer AND you've got a loan contingency with an appraisal clause, you can use that to exit yourself from the transaction, usually without penalty depending on the stipulations.

So that's a very quick tutorial as far as the appraisal process, if you've got any specific questions, you can put them down in the comment section and I'll be happy to answer them. If not, you can always give me a call. My name is Jeff Williams, and as usual. I'm looking forward to working with you.



Jeff Williams
Associate Broker
Berkshire Hathaway HomeServices Hodnett Cooper Real Estate
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