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.

Click Here to See What Your Home is Worth

Tucson AZ 85745

$3,275,000
4 Beds
4 Baths
4,425 SqFt
Status Active
MLS # 6765071
Property Type Single Family Residence
Price Type --
Enjoy privacy you've dreamt of owning with land that is nestled at the edges of Saguaro National Park and the Tucson Mountain range. Have your very own private ''resort'' hidden at the end of the road in secluded (but accessible) Chaos Canyon (running E-W) — where ''the chaos ends'' and calming begins. The property is the intersection of an old-world estate with new-world modern sophistication and amenities. The long and lighted rustic driveway greets you with rising rhyolite stone walls on either side, setting the tone for this solid and bright contemporary property that sits on about 6 acres and is offered with a builder's warranty or equivalent. Built in 1997/1998 the property was purchased by the current owners in November 2021 and then remediated and remodeled (actively from January 2022) through to about November 2023 and was not lived fully in until mid-November 2023. The newly remodeled property has been lived in less than one year. The goal of the remodel was to investigate and remediate any issues, to update, and to remodel the property with a simple and understated elegance using contrasting materials that form a canvass for any interior designs. There's no HOA (although there are neighborhood covenants with the two other nearby properties to protect you so you can have both peace and protections at your own private getaway). The property aesthetically offsets ruggedness of materials offset with elegant refinement and its setting captures the very essence of Arizona as the American Southwest, having stunning views of the saguaro-forested green desert also replete with mesquites, palo verdes and other desert flora covering the mountains towering above the property to the south and the west, and views of city lights and U of A to the east at night. The property offers 4 bedrooms and 4 baths and has 4225 SF of total interior living space, a 311 SF covered patio off the main kitchen supported with 150-year-old reclaimed oak timbers and a wood-burning fireplace for patio warming, together with a new industrial misting system installed in 2023 for patio cooling. The property has 3 fireplaces, all dual fuel (gas or wood). (In the dining room there's also a 150-year-old reclaimed barnwood dining table mounted on a concrete pillar with steel beams). The finished garage is 676 SF with its own AC with space for a workshop and it has ceiling racks for ample storage with new polyaspartic floors and 10 LED panel fixtures for a very bright garage (color temperature and dimming adjustable). There are brand new garage overhead doors plated with Corten steel with a sealed perimeter to prevent insects and critters. There are no homes in views to the south and only one in view to the west in the distance, and a neighbor over the hill to the north-east. The views eastward include other homes quite a distance off from this beautifully appointed property that contains stunning landscaping in its own right, including extensive custom outdoor pathway lighting, many mesquite, palo verde, and other trees (Texas Laurel, several species of palms, a cinnamon tree, olive tree, etc.) and shrubs (rosemary, jojoba, Texas ranger, Spanish lavender, etc.) combined with elegant cacti bisected by a stone pathway and aesthetically rusted steel railings. All yards except the front yard are enclosed with rock walls and/or custom metal & cable fences and gates. There's also a raised culinary herb garden below the kitchen window as part of the landscaping. Outdoor sitting areas are almost everywhere amidst the lush landscaping and as well on porches and around the very large swimming pool, on the backside of which is also a sitting area with win chairs for peaceful desert overlooking. A Zen-like garden graces the west-northwest side of the property with a heated Japanese soaking tub, a heated outdoor shower, and a private sitting and dining area. The main structures of the property - interior and exterior - and the pool design and placement were uniquely designed by award-winning architect Rob Paulus on an arc radius (see bird's-eye aerial photos) and it has been featured in design magazines and a popular music artist filmed a music video hit song at the property. The structures on the property are built on a radius of about 100 feet, and the main residence is a curved arc of about 100 feet in arc length. The structures on the property are also built like fortresses (steel roof, concrete, split-face block and steel frame structures) atop and into the side of a rhyolite (igneous) rock hill that had to be blasted-out with dynamite to excavate for the structural foundations. There are polished industrial concrete floors on the interior throughout except for the bedrooms in the main house that utilize 40x40 porcelain white concrete tiles to give a softer feel. The four interior showers and baths are all done in natural quartzite stone and marble pebble, and the bathroom, guest house, and laundry counters are natural limestone, whereas the kitchen counters are Caesarstone for durability, with accents of limestone on the kitchen windowsills. The laundry room also features a large limestone counter for folding clothes and an integrated ironing board and storage cabinets. There are plaster walls throughout the interior living spaces where there are not masonry split-face block walls. All windows frames, and exterior doors and frames, are completely custom, one-of-a-kind welded iron. The windows are all double pane. The remediation and remodel also includes, but is not limited to, (A) new custom wood and other cabinets throughout from Anything Wood supplying ample storage; (B) all new plumbing fixtures (Grohe, Franke, Toto, etc.); (C) all Lutron electrical devices, Lutron Smart Devices for critical controls from your phone; (D) all new LED lighting, including a 90 foot monorail art gallery lighting fixture that goes down the elegantly curved gallery hallway; (E) Italian Beluga leaded crystal spot lights for art in the entry and master and all new interior; (F) solid core and frosted glass interior doors with new hardware; (G) new closets (California Closets). The master bathroom includes Robern lighted medicine cabinets and a Robern lighted mirror in the master bath, an Anzzi freestanding stone composite soaking tub, dual Scarabeo Italian sinks, and a stone shower that has one full side as a window looking out to the beautiful landscape views to the south. In addition to the above, the remodel included, an all-new appliance and plumbing fixture package exceeding $85K that includes a chef's dream kitchen - that is huge (~400 SF), and that has a massive (~ 9 ft x 5 ft) Caesarstone waterfall island - including: (a) a Bluestar professional 48 open burner range with up to 22KBTU burners that go down to a simmer and that can be quickly changed to also have a stovetop charbroiled or griddle as the need arises and has two gas ovens with French doors for ease of access (Iron Chef Michael Simon and Giada De Laurentiis, for example, have featured Bluestar ranges in their kitchens); (b) a 48 Bluestar stainless hood and with a 1400 CFM external blower to evacuate cooking smells rapidly and quietly; (c) a 48 True Manufacturing professional refrigerator; (d) a Gaggenau (German) speed oven; (e) a Miele (German) Futura dishwasher; (f) a 24 lighted Zephyr wine cooler; (g) an 18 KitchenAid trash compactor; (h) a 42 Franke stainless steel sink (main kitchen) with a Franke disposal having a Grohe commercial faucet and a reverse osmosis faucet for perfectly pure water for coffee or drinking; (i) a 19 round Franke prep sink (main) with a ½ HP Badger disposal and Grohe faucet; (j) a built-in (and gas-plumbed) 44 TEC 60KBTU infrared grill in the outdoor patio just off the kitchen; (k) new oversized Electrolux washer and dryer; (l) a Wolf gas cooktop in the Guest House (GH) kitchenette; (m) a Sub Zero 24 refrigerator in the GH; (n) a Frigidaire over the range microwave in the GH; 24 (o) a Kraus stainless steel sink with Grohe faucet and disposal in the GH; (p) a new LG washer and dryer in the GH; and new tankless, instant hot water heaters (Main and GH). New one-piece Toto elongated porcelain toilets with a vitreous enameled finish were used throughout the remodel. There are 6 AC units on this property: 2 split units (Lenox), 1 package unit (Trane), and 3 mini splits (Mitsubishi in living areas and a Fedders in the garage) used for rapid cooling in specific areas, including the master bedroom to give it a good chill for sleeping at night without cooling the entire house that low at night. All of the living-area AC units (5) were replaced with brand new top-of-the-line Lenox, Trane, and Mitsubishi systems in November of 2023 and have extensive transferable warranties. The property has commodious storage spaces, including extensive cabinetry and customized storage racks in the garage, per above. Other buildings include a large block structure that encloses the 2500-gallon water tank (that buffers you from the water utility and provides additional storage space) followed by a state-of-the-art, whole-house and multistage water treatment system with softener, carbon and UV purification and is sediment-filtered down to 1 micron. There is a WiFi irrigation controller and constant water pressure via a pump set to 90 PSI that delivers 70PSI of filtered, descaled, and softened water to the houses, and 80 PSI of descaled water to the irrigation system. There's also a block-enclosed pool equipment hut to dampen noise and protect the equipment. The permitted remediation / remodel also included but was not limited to (1) roofs inspection & repairs; (2) over 70 window pane replacements; (3) electrical inspections, repairs, & new wiring with whole-house surge protection; (4) plumbing inspections, repairs, & new plumbing; (5) living spaces sealed on the exterior perimeter and all windows and doors sealed with industrial seals; (6) exterior doors have automatic door bottoms to insure good threshold seal; (7) new window screens; (8) new plaster and painting; (9) 3 new Ecobee smart thermostats with remote sensors; (10) two 2GIG security system panels with Honeywell devices; (11) the pool plaster and tile was completely chipped out and replaced with PebbleTech finish in 2022 with upgraded tiles and LED lighting in 2024, and all pool equipment was replaced with the exception of the heater that is still in good working condition. The Guest House is fully self-sufficient for temporary or long-term guests, and fully remodeled to the same level as the main house and has a large ¾ bathroom with an elongated WhiteHaus sloped sink, laundry, fireplace, and a kitchenette. There is a new 400A electrical panel that is solar ready.

23238 N 94th Place Scottsdale, AZ 85255

$3,275,000
4 Beds
4.5 Baths
4,837 SqFt
Status Active
MLS # 6762057
Property Type Single Family Residence
Price Type --
Beautiful custom residence with incredible views at Pinnacle Peak Vistas. 3 bedrooms plus office/ 3.5 bath located in 3863SF main house. Guest House boasts 974SF 1bd/1ba with full kitchen. Over 3/4 of an acre tucked into cul-de-sac lot with private circular drive. Updated kitchens and baths in both the main and guest houses with new cabinets and appliances. Primary bedroom includes private exit near spa and completely updated ensuite bath. Outdoor entertainment spaces include: double grills, dining spaces, misting system, elevated spa, infinity edge heated pool, and pet yard with 10ft fence for their safety. This well maintained home has new flooring, high efficiency water heater in main house and tankless water heater in guest house, new water softener, and central vacuum.

13240 N 60th Street Scottsdale, AZ 85254

$3,275,000 - 5Br/6Ba -  for Sale in Shea North Estates, Scottsdale
Open House
$3,275,000
5 Beds
5.5 Baths
5,022 SqFt
Status Active
MLS # 6750225
Property Type Single Family Residence
Price Type --
Move into this stunning NEW build by Thomas James Homes by the end of the year! Sitting in the highly desirable Scottsdale neighborhood, this beautiful 5 bedroom, 5.5 bathroom transitional style home is the definition of exceptional design. Wide plank wood flooring, decorative ceiling and wall treatments, including beams and wood paneling, impressive custom lighting, outstanding millwork, stone and tile accents, a gorgeous floor to ceiling fireplace, shaker cabinetry and a 4-car garage are just a sampling of the outstanding finishes going into the home. The large single story open concept floorplan is expertly crafted for modern living with a large interior courtyard leading to the home's entrance.

9770 N 130th Street Scottsdale, AZ 85259

$3,250,000 - 5Br/6Ba -  for Sale in Catavina, Scottsdale
New
$3,250,000
5 Beds
5.5 Baths
5,489 SqFt
Status Active
MLS # 6779125
Property Type Single Family Residence
Price Type --
Step inside this sanctuary of a home, masterfully redesigned by Wiseman and Gale—a breathtaking blend of elegance and contemporary comfort, nestled in the tranquil neighborhood of Catavina. The property features four generously sized bedrooms, each complete with its own ensuite and walk-in closet; along with a fifth bedroom, spacious game room, and a versatile den, perfect for a small gym, office, or studio. The heart of the home is adorned with high-end finishes including new hardwood floors and stunning Porter Barn Wood fireplace mantels that add a touch of rustic charm. The gourmet kitchen is equipped with a SubZero refrigerator, Bosch dishwasher, sprawling center island, and a walk-in pantry. Nearby, the built-in wet bar comes complete with a refrigerator, sink, and ice maker, ideal for hosting and everyday luxury. Some of the many recent upgrades include an owned 30 kW solar power system, recoated flat roof, new sewer line, R/O water filtration system, two new air conditioning units, new pool pump, and so much more. In the backyard oasis, the spa and renovated pool with waterfall and baja shelf invite you to refresh and unwind amidst the mature, lush landscaping and views of the surrounding mountains. While the expansive lot and natural desert scenery create the feeling of being in a secluded retreat, you're still less than 10 minutes from top-rated schools, premier medical facilities, high-end shopping, and hiking/biking trails, providing the perfect balance of privacy and accessibility. Don't miss your opportunity to own a piece of paradise in Scottsdale.

39797 N 107th Way Scottsdale, AZ 85262

$3,250,000
4 Beds
4.5 Baths
3,838 SqFt
Status Active
MLS # 6774973
Property Type Single Family Residence
Price Type --
Spectacular renovated home on the 8th green of the Apache Course. The Katie Mueller design team carefully chose a sophisticated desert palette in every room. Generous outdoor living areas grace the front and back of the home. You are greeted with a large courtyard area with a spherical water feature and huge views to the southwest. The interior has no steps and flows nicely from room to room. The remodel features an added bathroom, an expanded bath and a new kitchen pantry. A Wolf/Sub Zero appliance package compliments the fine oak cabinetry in the gourmet kitchen. Fantastic views to the South from the kitchen and back patio. A new dual sliding door enhances the space. New opportunities for temporary Lifestyle/Seven membership to the Desert Mountain Club for approved applicants

36133 N 24th Avenue Phoenix, AZ 85086

$3,250,000
4 Beds
4.5 Baths
5,249 SqFt
Status Active
MLS # 6719921
Property Type Single Family Residence
Price Type --
A remarkable opportunity to enjoy your own custom slice of paradise in the coveted gated preserve enclave awaits, no vacations needed! Builders bespoke meticulously crafted home with upgrades from the foundation up. Large private courtyard and abundant backyard are an entertainer's dream yet allowing for serene private enjoyment. From the outdoor kitchen & living room, to the statement fireplace, to the infinity edge pool straight from your Pinterest board. This oasis has uncompromising quality and attention to detail throughout. Expansive Designer Chefs kitchen. 2 room Casita w/ full kitchen and separate entrance keeps guests close while ensuring privacy for all. The upgrades are too great to list, come see this stunner in person today!

10512 E Cortez Drive Scottsdale, AZ 85259

$3,250,000
5 Beds
4.5 Baths
5,015 SqFt
Status Active
MLS # 6748941
Property Type Single Family Residence
Price Type --
* SCOTTSDALE STUNNER * CACTUS CORRIDOR GEM * BELLA MONTAGNA BEAUTY * 0.86 ACRE LOT * 5 BED * 4.5 BATH * 5,000+ SQ FT * HIGH-END STAINLESS STEEL APPLIANCES * NEW VINYL FLOORING THROUGHOUT * NEW MAPLE HARDWOOD CABINETS THROUGHOUT * NEW TAJ MAHAL QUARTZITE COUNTERTOPS THROUGHOUT * REDESIGNED KITCHEN * FRESH INTERIOR PAINT * FRESH EXTERIOR PAINT * PRIVATE SPORT/TENNIS COURT * RESORT-LIKE POOL * SPLIT FLOORPLAN * TOWERING COFFERED CEILINGS * 3 CAR GARAGE * EXTRA EXTRA PARKING * CIRCULAR DRIVEWAY * OWNED SOLAR SYSTEM * NEWER ROOF * CLOSE TO MAYO * CLOSE TO HONOR HEALTH * CLOSE TO BASIS SCOTTSDALE * CLOSE TO 101 * GET IT BEFORE ITS GONE! *

8212 E Tortuga View Lane Scottsdale, AZ 85266

$3,250,000
3 Beds
3.5 Baths
4,197 SqFt
Status Active
MLS # 6768265
Property Type Single Family Residence
Price Type --
Sited on one of the best lots in Whisper Rock's Villas neighborhood, offering unmatched views, privacy, timeless architecture & thoughtful design * Private entry courtyard with heated plunge pool & mature landscaping * Detached guest casita * Open floor plan is ideal for entertaining: Chef's kitchen with wet bar & casual dining; adjacent family room with stone fireplace & disappearing wall of glass doors; formal dining with temp-controlled wine room opening to front courtyard; office/den with built-ins & access to the back patio; dual master suites * Incredible back yard with generous covered patios, gas fire pit & fireplace, built-in BBQ island *

13463 N Stone View Trail Fountain Hills, AZ 85268

$3,250,000
4 Beds
4.5 Baths
3,760 SqFt
Status Active
MLS # 6774845
Property Type Single Family Residence
Price Type --
Turnkey gated Fountain Hills home in the Adero Canyon community. This modern lock and leave features open concept living with 15' ceilings in the great room with a fireplace, stunning chandelier over the dining area, and expansive kitchen. Chef's kitchen includes stainless steel Sub-zero and Wolf appliances, multiple ovens, and kitchen island. Primary suite features mountain views with freestanding bathtub, oversized shower, dual sinks, enclosed toilet, and walk-in closet with custom storage and vanity. Open the expansive sliding glass doors to experience the best of Arizona's indoor/outdoor living. Bask in soaring mountain views while entertaining family and friends in your backyard with a separate guest house, custom pebbletec pool with Baja shelf, travertine decking, covered patio, and desert low maintenance landscaping and turf. This privately gated quiet community has gorgeous views and biking, jogging, and hiking trails to enjoy year-round.

2677 E Queen Creek Road Gilbert, AZ 85297

$3,250,000
6 Beds
5.5 Baths
6,343 SqFt
Status Active
MLS # 6783522
Property Type Single Family Residence
Price Type --
Beautiful Ranch Estate in a one of a kind neighborhood with a current market appraisal at 3.4 M. The property delivers total privacy in a small 6 home gated Community. NO HOA WITH HORSE RIGHTS. Unique opportunity to own an original owner/builder estate. Property has been totally remodeled top to bottom while being meticulously maintained. This estate sits on approximately 1 acre. Both convenience and exclusivity are in this thoughtfully designed home built for large families or multi-generational families. Main Floor includes 3Bedrooms 2 1/2 Baths. See ''More'' Basement includes an additional theater room/family room, 2 baths, 3 bedrooms, and its own laundry room and storage. The attached Casita offers its own entrance, Full kitchen, Bathroom, laundry facilities, family room/Studio and even a small private yard. In the detached garage you'll again find endless possibilities with an air-conditioned storage room and additional room for private gym, office, whatever your needs are. Plenty of mature landscaping throughout the property with freshly remodeled amenities also make this home unique. This Estate offers mature Citrus orchard of fresh oranges, grapefruit, and tangelos that bring the quaint smell of spring to your backyard. A Large outdoor covered patio with Gas BBQ, beautiful seating area, and Gas Firepit. Entertain to your hearts desire with free-standing gazebo and 30,000-gallon heated pool and spa make it ideal for all your entertaining dreams. Detached garage offers tall Boat garage. This Ranch Estate embodies the best of both worlds offering NO HOA while also nestled in a gated enclave. Top-of-the-line Gilbert Regional Park just a walk down the street. Shopping and Freeway Access 5 Minutes away. What a Great Property with location, location, location!

19102 N 95th Place Scottsdale, AZ 85255

$3,250,000
7 Beds
5.5 Baths
5,915 SqFt
Status Active Under Contract
MLS # 6761058
Property Type Single Family Residence
Price Type --
Exceptional five-bedroom ranch estate with an additional 2-bedroom detached 1486 sf guest residence on oversized lot with luxurious resort style backyard is one-of-a-kind. In the heart of North Scottsdale, nestled in the charming 23 home gated community of Toscana, this private one-story home community is a hidden gem. Convenient yet private detached guest house is fully equipped and stylishly finished with eat-in kitchen and spacious great room opening to covered patio and fenced turfed area, with bedroom, bath, laundry, and ample parking. Resort style backyard with cascading pool water feature with dramatic fire bowls, ramada with Baja shelf for lounging, spillover spa, detachable pool slide, spacious grassy area, glass stack doors open to covered patio, built-in BBQ island with seating, and expansive deck for entertaining and poolside fun. Desirable home plan offers seamless indoor-outdoor living with spacious spaces and a center courtyard as the heart of the home, eat in kitchen opens to family room and to backyard oasis, plus living room/game room opens to courtyard, with two split ensuite bedrooms, two bedrooms with jack n jill bath, and an expansive primary suite with sitting/flex space all in the main home. Impressive finishes including hardwood and travertine flooring, quartz countertops, with stylish tile backsplashes, and hardware. Abundant sophistication throughout including soaring beamed ceilings with elegant stone fireplace, Viking range with 6 gas burners and griddle, and built in entertainment center. Prestige location immediately south of DC Ranch, conveniently located just minutes from Pima and 101, shopping and restaurants, and schools, yet removed from the hustle and bustle.

7330 E Arroyo Seco Road Scottsdale, AZ 85266

$3,250,000
4 Beds
6 Baths
6,460 SqFt
Status Active
MLS # 6609535
Property Type Single Family Residence
Price Type --
This very unique home is located in the Estate Lots at The Boulders. A custom steel gate of desert motif welcomes you into the front courtyard. The massive carved front doors feature a relief of a large multi-branched tree. The living Room has a 2 story ceiling and a beautiful winding stairway to the Family/Game Room with wet bar and bathroom located upstairs. Enjoy the mountain and golf course views from the balcony. The large kitchen opens to a family room with a fireplace, wet bar and entertainment center built-in cabinets. All guest rooms have their own baths. The Master Bedroom is a generous approximate 21 X 21 square feet with a huge walk-in closet. The pool patio area offers total privacy for relaxing or entertaining. The adjacent lot is also available for purchase. includes a boundary and topographic survey, a schematic site plan and schematic floor plan.

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