How to Handle a Low Appraisal for Your Custom Home in Las Vegas
By realtyonegroup / May 28, 2015
It’s natural to feel let down when a home appraisal for your custom home in Las Vegas comes back lower than your asking price. By working with an experienced Las Vegas Realtor who knows the best negotiation strategies, you’ll likely achieve the best outcome for you. At this time, it’s a seller’s market in Las Vegas where there’s a limited inventory but high demand for luxury custom homes. When it comes to the value of your home, it’s often difficult for appraisers to pinpoint the value of certain unique features. Custom homes are simply more complicated to assess in terms of property value. An article by mysa.com about appraisals coming in below a sales price, explains how banks rely on an accurate appraisal as a sort of self-protection in case a borrower defaults on a mo rtgage loan. As the seller, it is often frustrating. However, you do have a few key options.
Letting the buyer pay the difference
Because it’s a seller’s market, there are currently a lot of motivated buyers who will do what they need to do to close the gap between the appraised value and the contract price. Your Realtor will find out if the buyer will pay the higher price to make the deal happen.
Negotiating a 50/50 split
If the buyer can’t afford to make up the entire difference, they will likely meet the seller halfway by paying half of the money. If the contract price agreed upon for your custom home in Las Vegas is $500,000, but the appraisal comes in at $490,000, you could lower your price by $5,000 and the buyer could put another $5,000 down as part of the down payment.
Appealing the appraisal
Your Realtor will help you appeal the appraisal if you believe it is way off the mark. The lender can ask for a second appraisal. If both appraisals are dramatically above or below your listing price; then, consider a different listing price. In many cases, though, you’ll find at least one buyer is willing to pay the extra cost to own a custom home that is their dream home.
Written By: Jim Simmons
