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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915 E Cobble Stone Drive Queen Creek, AZ 85140

$589,000
3 Beds
3 Baths
2,186 SqFt
Status Active
MLS # 6716595
Property Type Townhouse
Price Type --
Start enjoying Encanterra today! This spacious resort home is situated on a premium homesite overlooking a walking trail and stunning mountain views. This home offers a bright and open floorplan with 3 bedrooms, 3 bath, den and spacious loft. Step inside and you'll find upgraded tile plank flooring. The kitchen has beautiful maple cabinets and gorgeous quartz countertops and custom backsplash. All the bathrooms are upgraded with tile surrounds and upgraded fixtures. The garage is spotless with an epoxy finish, R/O and soft water system. The home is situated on a premium homesite and steps away from La Casa as well as the new Algarve, adult pool and restaurant. The Resort collection at Encanterra is perfect for the seasonal resident or year-round homeowner!

2930 E Leland Street Mesa, AZ 85213

$589,000
4 Beds
2 Baths
1,796 SqFt
Status Active
MLS # 6749119
Property Type Single Family Residence
Price Type --
This newly painted home w/garages & parking galore!! NO HOA!! 3 car garage, a 12 ft RV gate, & a 60 ft long by 15 ft wide concrete pad behind the gate. A 46 ft long by 5 ft wide concrete walk leads from the garage walk door to back yard. Front door is under a covered pergola seating space & opens to a large front living room & then into the spacious kitchen, great room & breakfast nook. 42'' wood cabinets glow, accented by the beautiful granite and tile work. Master and 3 bedrooms complete the package. Lg master w/walk door to back patio, walk-in closet & beautiful bath w/custom tiled shower. Newer appliances. Interior just painted/freshened up, as well as exterior and trim painted. Large back yard is an open canvas & sale includes the 10 ft x 8 ft shed. Convenient NE Mesa location

1178 E Sabino Drive Chandler, AZ 85286

$589,000 - 3Br/4Ba -  for Sale in Horizon, Chandler
Open House
$589,000
3 Beds
3.5 Baths
2,239 SqFt
Status Active
MLS # 6687681
Property Type Single Family Residence
Price Type --
Just steps from the beautiful community pool and Tumbleweed Park and Rec Center. Bright, airy and open is the best description for this home. An island , breakfast bar and large pantry highlight the entertainer's kitchen with Stainless Steel Appliances. A sizable walk in closet, large private bath and dual sinks show off the primary bedroom. Located very close to shopping, schools and the freeway access. Lease expired and tenants left.

3677 E Park Avenue Gilbert, AZ 85234

$588,900
3 Beds
2 Baths
1,450 SqFt
Status Active
MLS # 6757367
Property Type Single Family Residence
Price Type --
Welcome to this stunning home in the highly desirable Gilbert neighborhood of Higley Groves! Nestled on a lush tree-lined street across from the local school, this home offers both charm and convenience. Inside, you'll find a beautifully upgraded kitchen with quartz countertops, new stainless steel appliances, a stylish farm sink, abalone backsplash, and refinished cabinets with new hardware. The master suite features double sinks and a walk-in shower, while upgraded tile flooring throughout, 5-inch baseboards, and fresh paint enhance the modern feel throughout the home. New ceiling fans with remotes are hung in every room. Garage floors have beautiful epoxy finish. Wood shelving in garage will convey, however, wood workstation will not convey. Step outside to your backyard oasis with new pavers, a sparkling pool, and a heated Jacuzzi perfect for relaxing or entertaining. Both the pool pump and spa heater were replaced within the last year for worry-free enjoyment. The front courtyard, also with new pavers, offers an inviting space to unwind. Additional newly poured concrete slab in the driveway offers extended parking to the future homeowner. Blackout sunscreens on the windows provide relief from the beautiful Arizona sun when enjoying the calm interior of your new home. This low-maintenance home is ready for you to move in and enjoy! TVs and TV mounts do not convey.

624 E Laguna Drive Tempe, AZ 85282

$588,500
3 Beds
2 Baths
1,803 SqFt
Status Active
MLS # 6759953
Property Type Single Family Residence
Price Type --
Solar Powered Energy Efficient Mid Century Modern 3 Bedroom 2 Bath Home located in a quiet cul-de-sac. 2 Car Attached garage with a brand new EV Charger. Extra Large Old Fashioned Pool with a 9' depth, a new filter and pump, with new decking. Remodeling: new master bath, new flooring throughout house with baseboard, new light fixtures, new HVAC duct work and vent system. Plumbing, electrical landscaping, and painting upgraded. It is a work in progress. You can finish to your tastes. Profitable rental and you can have an ADU. No HOA for your friends who have motor homes. Near schools and parks in an up and coming area of Tempe, 2 miles from the ASU campus. The lot is huge with alley access. Extra tall block wall in backyard for maximum privacy.

1114 N Velma Court Gilbert, AZ 85233

$588,500 - 4Br/2Ba -  for Sale in Kaufman And Broad At Cooper Ranch, Gilbert
Open House
$588,500
4 Beds
2 Baths
1,942 SqFt
Status Active
MLS # 6769960
Property Type Single Family Residence
Price Type --
Discover this exceptional ADA-accessible 4-bedroom, 2-bathroom home in Cooper Ranch, Gilbert, perfectly designed for comfortable living and entertaining. Enjoy the inviting atmosphere with fresh interior and exterior paint, solid wood doors, and brand new tile flooring throughout. The spacious, brand new extended porch is ideal for relaxing by the pool, while two charming barn doors add a unique touch to the open layout. The home boasts a well-maintained AC system (only 4 years old) and a brand new roof and fascia boards (2021). Outdoor spaces feature stunning travertine pavers, pet-friendly artificial turf, and a professional putting and chipping area designed by Celebrity Greens. With recent upgrades including a new power panel box (2022), water heater for the hot tub (2021)... and a modern kitchen remodel (2020) with new appliances (2022), this home blends style and functionality. Amazing solar powered pool lift for easy access to enjoy the sparkling pool. A 220 outlet in the garage is perfect for EV charging, while an accent wall installed in 2021 adds a stylish flair. This beautifully updated home is ready for you to make lasting memories!

932 W Macaw Court Queen Creek, AZ 85142

$588,005
4 Beds
3.5 Baths
2,303 SqFt
Status Active
MLS # 6782320
Property Type Single Family Residence
Price Type --
Ready End of December! Located Near all the amenities and park area.4 Bedrooms 3.5 baths, plus Study, beautiful White cabinets with Quartz Counter tops, Gas range, wood look tile, Herringbone tile backsplash and two-tone paint throughout!! View fenced backyard with covered patio to enjoy. Just steps away from all the amazing Amenities North Creek has to offer.

683 W Princeton Avenue Gilbert, AZ 85233

$588,000
4 Beds
3 Baths
2,416 SqFt
Status Active
MLS # 6779854
Property Type Single Family Residence
Price Type --
Prepare to be amazed by this magnificent two-story gem in the desirable Community of Silverhawke! This beauty displays lush greenery, a mature shade tree, a 3-car garage, & an inviting courtyard. You'll love the immaculate interior, boasting spacious living areas perfect for welcoming & entertaining. The home exudes charm with its vaulted ceilings, chic light fixtures, & tile flooring. The impeccable kitchen is fully equipped with granite counters, a mosaic tile backsplash, recessed lighting, a pantry, & white cabinetry w/crown molding. Main suite is located upstairs & adorned with soft carpeting, a full ensuite w/a sliding barn door, & a generous walk-in closet. The home's elegance extends outdoors to the private backyard with a covered patio, fragrant citrus trees, & pavers. Act now! Vacant and easy to show. Appliances included. Additional incentives available.

4129 E Nighthawk Way Phoenix, AZ 85048

$588,000
4 Beds
2.5 Baths
2,782 SqFt
Status Active
MLS # 6782855
Property Type Single Family Residence
Price Type --
Great bones on this home that is priced to sell. Owner bought this in 2010 and is ready to sell quick! Huge primary bedroom on MAIN FLOOR, 3 car garage, pebble-tec pool w/ pop up heads and heated spa! Don't forget the 3 car garage! Great area with NO HOA makes this a real find. Former rental that can be cleaned up w/ paint/carpet, etc (everything works just fine in the home) or fully remodeled and flipped.

11946 W Parkway Lane Avondale, AZ 85323

$587,995
3 Beds
3 Baths
2,480 SqFt
Status Active
MLS # 6761545
Property Type Single Family Residence
Price Type --
The heart of this ranch-style home is an open floor plan with a family room, a breakfast nook and a large gourmet kitchen. The adjacent primary suite offers a walk-in closet and an attached bath. You'll also find two additional bedrooms and a bath, as well as a quiet study and a guest suite complete with a living area, bedroom, and private bath. Includes covered patio and a 2-car garage!

375 E Citrus Hollow Way Queen Creek, AZ 85140

$587,979
2 Beds
2.5 Baths
1,678 SqFt
Status Active
MLS # 6629644
Property Type Townhouse
Price Type --
This brand new Valletta model is move-in ready! It features a spacious layout with plenty of natural light. The kitchen is fully equipped with stainless steel appliances and granite countertops. It has a gourmet kitchen, gas cooktop and will be the perfect place to entertain your guests. Both bathrooms are highly upgraded with tile surround and upgraded fixtures. The resort collection at Encanterra offers you the perfect balance if you are a seasonal owner or full time. Book your tour today and start living the good life at Encanterra now!

3109 E Larkspur Drive Phoenix, AZ 85032

$587,700
4 Beds
2 Baths
1,550 SqFt
Status Active
MLS # 6747596
Property Type Single Family Residence
Price Type --
Discover the epitome of versatile luxury with this stunning property, ideal for use as an income generating investment, or a personal residence. Imagine unwinding by your heated pool, grilling up a feast under your covered patio or perfecting your putt on your very own backyard green. This exceptional & fully renovated home boasts 4 spacious bedrooms, 2 bathrooms, & a host of premium features including granite countertops, stylish laminate wood flooring, an upgraded garage floor & ceiling fans in every room! Enjoy the added benefits of solar panels on a new roof, and the convenience of an option to purchase fully furnished for a seamless transition. With no HOA & easy access to freeways, plus a mere 15-minute drive to PHX Airport, this property offers both luxury and convenience.

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