Amid a recession, people may anticipate home values to drop. As a result of a significant lack of housing inventory in the Kansas City property market, house prices are rising. According to the Kansas City Regional Association of Realtors, the area’s housing supply was down by 45.5% in June compared to the same month last year. Multiple offer scenarios and bidding wars for Raymore area properties are becoming more common due to a lack of availability. However, even if you get an offer for more than the asking price on your property, the house still has to be appraised for the selling amount.
Things don’t always go according to plan when selling a home. When everything seems to be going well, the transaction might fall apart at the last minute. Perhaps you’ve got an excellent offer, the buyer is serious, and you’re ready to move ahead — only to discover that your property appraised at a low value. It’s hardly unheard of, But what if that’s the case? If the value of your Raymore home is less than you expected, follow these five suggestions.
1.Identify the Reasons for Your House’s Low Appraisal
Determine why your Raymore property is valued lower than it should, and then take action. You’ll be able to see where you’re going and what steps you need to take next.
The following factors most often cause a poor assessment:
INCREDIBLY UNSKILLED APPRAISER
Even though this isn’t an everyday event, it does occur. This might be the fault of an unskilled appraiser unaware of the impact local factors have on market value. pending sales data, which may show greater comparable sales when they are closed; they may have picked comparable sales from the incorrect areas.”
FACTORS INVOLVED IN THE MARKET
A variety of market variables may also cause a poor assessment. Pricing may have been exaggerated due to several bids, for example. Alternatively, a rise in the number of houses on the market and a lack of purchasers may have resulted in a lower-than-expected evaluation.
COMMON LOW APPRAISAL FACTORS
The following are some of the most prevalent low appraisal factors:
- Simply put, you overvalued your house.
- “It’s possible that the underwriter miscalculated.”
- There weren’t enough recent sales in the neighbourhood to base a fair appraisal.
2. Reduce Your Costs
Once you’ve figured out why your Raymore house isn’t worth as much as it should be, you have a few alternatives. You may start by lowering your prices. This may not be what you want to do, but if any of the following conditions arise: It’s possible that your house was either overpriced or overvalued for the reasons stated above.
There’s no assurance the seller won’t get a poor assessment from the second buyer’s lender as well,” industry experts tell you to keep in mind. This doesn’t even consider the time and effort it takes to re-sell the home. In certain cases, it’s ideal to have a bird in the hand.”
If you want to be sure you’re not making any expensive errors, speak with your local agent. Contact us at (816) 695-7352 to learn more.
3. Arrange for a cash refund of the difference
If the assessed value of your Raymore home is lower than your asking price, you may arrange to have the difference in cash paid to you. Because the loan-to-value ratio won’t be affected, lenders are usually okay with this.
If the buyer’s bank doesn’t loan you enough money to cover the full asking price, you may still receive your asking price using this arrangement. It doesn’t imply that the lender won’t lend if the valuation is low. Depending on the appraisal value, a loan will be made at the agreed-upon percentage.”
4. Disagree with the Evaluation
Dispute the appraisal and/or get a second appraisal if you think your Raymore residence is overpriced. You’ll need to get a copy of the appraisal from the buyer and then call the lender to learn about and challenge the assessment process.
Request that “the agents involved put together a list of recent comparable sales that support the agreed-upon selling price, then present that list to the underwriter and ask for a review of the appraisal. Use comparables that are more closely related to the subject property than the appraiser’s comparables.
A second assessment may be the best course of action if you and your agent believe it will result in a better value. As for this case, these are the experts’ opinions: In most cases, only the buyer may seek a second evaluation, which may or may not be granted. If you’re the seller, you might offer to divide the costs of the second appraisal.”
5. Dispute the Appraisers Opinion
When your Raymore property appraises low, you have the option of walking away from the deal entirely. If a buyer cannot get financing or an appraisal is too low, the purchase contract may include a finance contingency. It’s possible to walk away from a deal, but you’ll have to pay back the money the buyer put down as a deposit.
Canceling the deal isn’t as horrible as it sounds since you may be able to sell for more money than the low assessment suggests if the right circumstances are met. Your home’s value may be much higher if you put it back on the market and get an offer.
Make sure that you have an experienced local real estate agent on your side to prevent these less than ideal options. Using a comparative market analysis (CMA), an agent can help you calculate a fair market value for your home and then recommend an acceptable listing price.
Don’t find yourself in a scenario where your Raymore, Missouri, home is undervalued. If you need assistance pricing your property appropriately and fairly, we’re here to help! Send us a message or call at (816) 695-7352 to learn more.
We recommend selling at a time when there is less competition! Here in the Cass and Jackson Counties of Missouri, it is true. Buyers flock to the Kansas City metro area to take advantage of record-low borrowing rates on houses. Raymore house sellers will be able to obtain the most money possible for their property because of the low housing supply in the Kansas City region. Please fill out the form below if we can assist you in your search for a new home in Raymore or the surrounding region or the sale of your current property.