Strategies For Dealing With Low Appraisals

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Strategies For Dealing With Low Appraisals

If you haven’t had appraisals come in low, you’re not doing enough loans. Don’t let a low appraisal kill your deal. Become a problem solver.
Show your borrower strategies to still purchase a home where the appraisal came in lower than the purchase price.


2 responses to “Strategies For Dealing With Low Appraisals”
  1. dansmorse@gmail.com Avatar
    dansmorse@gmail.com

    Just had a deal where purchase price was $320k and appraiser came back with $286k. Could give borrower another $3,000 raising rate .25% and increasing pmt about $44 p/month. Also offered to call seller (both agents accepted the offer) and advised values for most sales are in Fannie and Freddie database. Collateral Underwriting (Fannie loan) suggests to underwriting what comps should be used. Appraiser used them all. Unless someone was willing to really over pay– they would have same issue with another buyer. Offered reconsideration process which we went through (twice) and still no budge on price for reasons mentioned above. Couldn’t throw out appraisal as it was within range. Seller agreed to $290k amount. Good info in video! cut short a bit at the end so maybe you talked about offering to call seller.

    1. John Coleman Avatar
      John Coleman

      Hey Dan –

      Appreciate the insight and feedback!

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