Sometimes, home appraisals come in low. While it’s disappointing to find out that an appraiser thinks your home isn’t as valuable as you think it is, the fact is that your home is only worth what a buyer is willing to pay for it.
With that said, there are several reasons an appraisal can come in low.
4 Reasons Appraisals Come in Low
Not all appraisals come in lower than the price sellers want to ask. Sometimes they come in higher (which is great news). However, when an appraisal does come in low, it could be for one of these reasons.
Low Appraisal Reason #1: Declining Market Values
When fewer buyers are in a flooded real estate market with tons of homes for sale, property values drop.
Low Appraisal Reason #2: Nearby Foreclosures
When a neighborhood has a lot of foreclosures or short sales, the value of other homes can go down—and there are fewer comparable sales an appraiser can use, too.
Low Appraisal Reason #3: Overpricing
When your Lake City Realtor® tells you how to price your home, it’s a good idea to listen. Your agent has experience in your market and knows what buyers are likely willing to pay.
Low Appraisal Reason #4: Artificially Inflated Prices
Sometimes when multiple offers come in on a nearby home and it sells for a higher-than-asking price, it can skew the data the appraiser is looking at when he or she is determining how much your home is worth.
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