Understanding Appraisals and What to Do If Your Home Doesn’t Appraise for Its Purchase Price

Understanding Appraisals and What to Do If Your Home Doesn't Appraise for Its Purchase PriceIt can be a bit of a surprise if your home turns out to be valued at less than the purchase price offered, but this is the type of thing that can occur in an appraisal situation. While this can change everything from your contract to the amount of your down payment if your home has been appraised at less than you envisioned, here are some options you may want to consider.

Review The Appraisal Contingency Clause

If an appraisal contingency clause is built into the terms of your contract, this means that the terms of your contract can be re-evaluated and re-negotiated if an appraisal happens to come up short. While this is meant primarily to protect the homebuyer against a lower appraisal, it doesn’t mean that the terms of a new deal can’t be met for the good of both parties.

Get A Second Appraisal

It’s entirely possible that the initial appraisal is accurate, but it doesn’t necessarily hurt to get a second opinion in the event that the first appraisal seems too low. While you can work in conjunction with your lender to get a second appraisal, you may need to pay for it the second time around in order to get your initial purchasing price. Whether it happens to be good news or bad news, it can be worth the peace of mind to know how to proceed.

Consider A Lower Price

It’s less than ideal when your home is appraised for less than the purchase price, but this doesn’t have to be a deal breaker when it comes to selling it. While you may be able to get away with a higher price for your home in a hot real estate market, if things have cooled off, this can be an important time to re-negotiate the deal you’ve got. If a potential buyer likes your home and has already made an offer, they may be happy to decide on new contract terms.

It can be quite disappointing if your home is appraised at a value that is less than the offer you’ve received, but this doesn’t necessarily mean that you’ll have to put your home back on the market. Whether you and the potential buyer decide to re-negotiate or get a second opinion, there are options that can be beneficial for both parties. Give me a call with any questions – J.P. Cook – 602-320-4253.

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2329 W Speer Trail Phoenix, AZ 85086

$1,150,000
3 Beds
3 Baths
3,137 SqFt
Status Active
MLS # 6726118
Property Type Single Family Residence
Price Type --
Welcome to your desert oasis in Arizona! This stunning property offers luxury living on a one-acre lot, providing ample space and privacy. The house features 3 spacious bedrooms and 3 bathrooms, perfect for accommodating family and guests. With a generous 3,137 square feet of living space, there is plenty of room for relaxation and entertainment. The home also includes a convenient car garage for working on your next car rebuild plus ample storage! There is over 7,200 roof covered space! Enjoy the tranquility and breathtaking views of the desert landscape from your own backyard. Whether you're watching sunsets or stargazing at night, this property offers a peaceful retreat away from the hustle and bustle of city life. Priced at $1,150,000.

2534 N 52nd Street Phoenix, AZ 85008

$1,150,000
5 Beds
4 Baths
3,174 SqFt
Status Active
MLS # 6737826
Property Type Single Family Residence
Price Type --
Welcome to this unique investment opportunity! This property features a spacious, fully renovated charming house at the front and a duplex at the rear, offering a total of three units on one expansive lot. Ideal for investors or multi-generational living, each unit presents distinct living spaces and successful rental income. The property is located in Arcadia lite, near the best shopping and conveniently situated near freeways for an easy drive to downtown. Just 10 minutes from ASU, Tempe, and old town Scottsdale, and close to amenities and major thoroughfares, this property is a must-see for those seeking versatility and value. House is 1636 sqft plus garage and 2 back units at 769 sqft each, each with its own carport. Don't miss out !

33317 N 71st Street Scottsdale, AZ 85266

$1,150,000
3 Beds
2 Baths
2,303 SqFt
Status Active
MLS # 6734451
Property Type Single Family Residence
Price Type --
Enjoy the Terravita Lifestyle in this gorgeous three Bedroom Caelum Model. The Great Room shows a Stone Fireplace and Wood Plank Tile Flooring. Master Bath and Junior Bath are remodeled as well as the Kitchen with high Quality Cabinets, Granite Countertops and built-in Wine Bar. The spacious Office has Alderwood built-in Bookcase and Desk. Watch the Sun and the Moor rise in your Resort Like Back Yard with View of Winfield Mountain, heated Pool, Putting Green, built-in Barbeque and Fireplace.

9285 W Juniper Road Pine, AZ 85544

$1,150,000
4 Beds
4 Baths
3,826 SqFt
Status Active
MLS # 6750019
Property Type Single Family Residence
Price Type --
Welcome to this enchanting French Country farmhouse on 2.23 fenced acres suitable for horses and featuring two separate living quarters. All of this is nestled amidst a beautifully landscaped country garden with mature shade and fruit trees. The main living quarters offers 3 bedrooms, 2 full bathrooms, a spacious open loft with a half bath, a gorgeous kitchen with travertine flooring and granite countertops, a large wood-burning fireplace and access to a serene back patio. The second living quarters includes 1 bedroom, a ¾ bath, an updated kitchen with granite countertops, a cozy gas fireplace and a charming covered balcony overlooking a panoramic view of Strawberry Mountain. The property also boasts a large, attached garage with custom wood doors and a detached 24X48 ft combination PEACEFUL ESTATE COMBINES LUXURY LIVING WITH OUTDOOR CHARM

201 N Fawn Drive Payson, AZ 85541

$1,150,000
3 Beds
2 Baths
2,310 SqFt
Status Active
MLS # 6756145
Property Type Single Family Residence
Price Type --
Here is your chance to own elegance with character. Pride of ownership exudes in this tutor style three bedroom two bath home on just over an acre. Nestled In the quiet neighborhood of Manzanita Hills, commune with nature and enjoy the views on the back deck, the adjacent acre next-door is also available to purchase for your added privacy. As soon as you walk in the front door, you are greeted by a magnificent great room and stone fireplace. With a rustic atmosphere and Tuscan like kitchen there is room for all. Porcelain flooring and new interior paint has been completely redone as of December 2021, newer roof installed three years ago, solar panels have not been reinstalled. Owners will credit toward reinstallation and remaining lease amount of solar panel.

7121 E Rancho Vista Drive Unit 3011 Scottsdale, AZ 85251

$1,150,000
2 Beds
2 Baths
1,628 SqFt
Status Active
MLS # 6775711
Property Type Apartment
Price Type --
Discover the pinnacle of luxury with this exquisitely remodeled condo, perfectly situated in the heart of Scottsdale. Thoughtfully redesigned with the discerning buyer in mind, this spacious sanctuary showcases brand-new premium Karndean Select Warm Ash flooring, refined lighting fixtures, and breathtaking quartz kitchen countertop and honed marble bathroom countertops that exude sophistication at every turn. Every detail reflects modern elegance, seamlessly paired with timeless charm for an atmosphere of pure opulence. Located within an exclusive, resort-inspired community, residents enjoy access to world-class amenities that elevate daily living to an art form. This rare gem presents an unparalleled opportunity to experience elevated comfort, style, and exclusivity. Don't let this masterpiece pass you by.

947 Morins Ranch Road Show Low, AZ 85901

$1,150,000
5 Beds
4 Baths
3,964 SqFt
Status Active
MLS # 6762236
Property Type Single Family Residence
Price Type --
Lush green grass and the beautiful park like landscaping welcome you to the perfect family home. No HOA on 3.08 acres in Show Low is quite the find. This spacious home is the perfect spot for family gatherings and holidays. The chef's kitchen has an indoor vented grill, large island, double ovens and an oversized pantry. A pellet stove keeps this wing of the house cozy in the winter and conserves energy as well. Large double pane windows throughout the house let in plenty of light. The family/great room boasts tongue and groove aspen ceiling and accent wall as well as a wood burning fireplace. French doors open to the fully fenced yard where the natural vegetation and landscape has been preserved. The oversized bedrooms all have plenty of closet space and shelving Newly constructed 2400sf Mueller shop, 16 foot ceilings, 2 - 60x15 covered car ports on either side of the shop. Shop is equipped with water, electric and air lines for air compressors.

7617 E Presidio Street Mesa, AZ 85207

$1,150,000
5 Beds
3 Baths
2,983 SqFt
Status Active
MLS # 6763833
Property Type Single Family Residence
Price Type --
Experience peaceful AZ living in this updated custom home situated on an acre+ lot in the gated community of Sossaman Heights. The stunning open plan offers a beautiful kitchen & dining area that flow into the great room ideally designed for daily living & entertaining. The primary suite boasts refined finishes & a spa-inspired bath with a zero-grade entry shower & large closet. The beautifully designed backyard offers a private park with walking paths, entertaining ramada, expansive patios, built-in BBQ, firepit & hot tub. Additional features include an extended length 3-car garage, RV gate, stunning view deck & tons of storage throughout. With ample space to add an RV garage, casita, and/or pool the possibilities are endless!

3205 W Silver Sage Lane Phoenix, AZ 85083

$1,150,000
7 Beds
4.5 Baths
4,126 SqFt
Status Active
MLS # 6766510
Property Type Single Family Residence
Price Type --
Welcome to your dream property, perfectly blending function and elegance! Situated on a spacious double lot, this extraordinary home offers added privacy with no rear neighbors, making it an ideal retreat for families and entertainers alike. As you step inside, you'll be greeted by a light and bright, thoughtfully designed layout. To your right, you'll find a cleverly concealed laundry room and an office, both featuring doors that seamlessly blend into the white wall for a clean, modern aesthetic. The heart of the home boasts a fully remodeled kitchen, perfect for culinary enthusiasts which is open to your dining and living areas letting you stay engaged with family and guests. The main level includes a large primary suite, with its own ensuite and walk-in closet, offering easy access and comfort. The upstairs has a separate living/playroom, laundry room, six additional bedrooms, with two large enough to serve as secondary suites, and two bathrooms, providing flexibility for guests or family. The home is equipped with two newer Trane 5-ton, 17 SEER air conditioning units and a modern water heater, ensuring year-round comfort and energy efficiency. Outdoor Entertaining: Step outside to discover your own outdoor oasis! The property features two expansive patios, perfect for entertaining or simply relaxing in the sun. Custom metal structures at both ends of the patios are adorned with blooming jasmine, creating a serene atmosphere. An RV gate, Ramada, and a fully equipped outdoor BBQ/kitchen make this space perfect for hosting gatherings. The Aero Professional misting systems on the patios provide comfort during those warm summer days. Hate putting up and taking down Christmas lights each year? No problem, they have been permanently installed on this home! Expansive Shop: For those with hobbies or business needs, a standout feature of this property is the impressive 40x40 shop. Complete with two oversized 2-car garage doors, this space is deep enough to accommodate a boat or large truck. Inside, you'll find a full bath and a separate room that could easily be converted into a casita, providing additional living space or a private home office. The shop is temperature controlled with two newer mini-split units, and a tankless hot water heater adds convenience. Fully permitted, this space has extra power to meet all your needs, and the roof is only about six years old, ensuring durability. This unique property truly has it all, spacious living, functional workspaces, and an incredible outdoor environment. Don't miss the opportunity to make this exceptional home your own!

5202 E Emile Zola Avenue Scottsdale, AZ 85254

$1,150,000
4 Beds
3 Baths
2,936 SqFt
Status Active Under Contract
MLS # 6787632
Property Type Single Family Residence
Price Type --
Highly sought-after .875 acre Sunburst Farms corner lot! Home features double ovens, a new dishwasher, granite countertops, and recessed lighting. Have horses? This lot also accesses the bridal path which is also a tremendous walking/biking/running path. Sonrisa and Sereno Parks are both within walking distance as well as Desert Shadows Elementary/Middle Schools. Create the home of your dreams or enjoy this fully-functional and much loved family home as-is and re-make it your own over time. Tennis court and private pool also located on the grounds. Conveniently located close to the 51 and the 101 freeways, the Paradise Valley Mall redevelopment, Desert Ridge, Costco, and everything Scottsdale has to offer. This is truly a neighborhood/lot that can grow with your family for generations.

3518 E Desert Cove Avenue Phoenix, AZ 85028

$1,150,000
3 Beds
2 Baths
2,568 SqFt
Status Active
MLS # 6773595
Property Type Single Family Residence
Price Type --
Seize this rare opportunity to own a meticulously maintained single level gem sitting on over 1 acre in the highly sought-after Desert Paradise community! This 2,568 sq. ft. home includes an inviting front living room addition, updated flooring, sparkling blue pool, oversized 3 car garage, massive front & backyard, RV Gate & renovated master bath. Possible lot split opportunity!!! Did we mention this home was sitting on 1 acre! Updated Landscaping, New Soft Water System, Newer Carpet, New Electrical Panel, New Heat Pump, New Pool Pump, New Fridge & Dishwasher, New Tankless Water Heater & More!!! Centrally located just minutes from Paradise Valley, top-rated schools, shopping, dining, entertainment & freeway access. This home is a must see!!!

7117 E Rancho Vista Drive Unit 2005 Scottsdale, AZ 85251

$1,150,000
2 Beds
2 Baths
1,635 SqFt
Status Active
MLS # 6773268
Property Type Apartment
Price Type --
This stunningly, fully remodeled 2-bed, 2-bath condo epitomizes modern urban luxury and is among the larger two-bedroom units in the entire complex. The open-concept design combines sleek, contemporary finishes with functional style - showcasing new flooring, elegant quartz countertops, and a striking electric fireplace. Every detail has been carefully considered to breathe fresh life into this space. The gourmet kitchen is a true showstopper, featuring a new stainless steel gas cooktop, waterfall quartz countertops, and a matching backsplash. To create a sophisticated focal point in the kitchen, the island features bold white marble quartz outfitted with a large single basin sink. The living areas are bright and spacious, illuminated by floor-to-ceiling windows that fill the condo with natural light. These expansive windows are equipped with roller shades for added privacy when needed. For cozy winter nights, the new electric fireplace in the living room adds a warm and inviting ambiance. In addition, this unit offers a large bonus room perfect for a formal dining room, office or pool table. Step outside to the remodeled patio featuring new Italian porcelain tile, new landscape and a glimpse of the iconic Camelback Mountain. The master bedroom serves as a serene retreat, perfect for unwinding after a long day. Its en-suite bathroom evokes a spa-like experience with new flooring, updated shower tiles, and sleek modern lights & faucets. A generous walk-in closet provides ample space for clothing and accessories. To top it all off, Optima Camelview Village offers a luxurious array of amenities to complement your high-rise living experience, making this condo the perfect urban sanctuary. This fully renovated condo is priced competitively at one of the lowest prices per square feet being offered!

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