Can you avoid a low home appraisal in Downey CA?

In this fast moving real estate market, one item that seems out of everyone’s control that can kill a deal is the home appraisal. But is it really completely out of everyone’s control?

Before answering that question let’s look at the possible appraisal scenario that could kill your deal. Imagine that you are a buyer and find a home that you want, and it is listed at $400,000.  You put in an offer that is accepted at $375,000 and begin the escrow process. Now a week or so later the appraisal comes back showing the value at only $300,000. Your lender will not let you spend more, so who is going to make up the difference?  In most cases unfortunately the answer is no one and the deal falls apart.

If you are a buyer, here are a few things you can do to help ensure the home appraises for what you think it is worth.

1. First, make sure your lender is using an appraiser from the specific area that your home is located.
2. Ensure that the appraiser is certified as a residential appraiser.
3. Meet the appraiser at the home on inspection day. Let them know what you see in the home and what comparable properties you looked at to help make your offer.

Now if you are the seller, there are a few things you can do as well.

1. Get an appraisal done before listing your property to ensure you are listing at a reasonable market price.
2. Now that you have a report from a certified appraiser, you can supply that report to any other appraiser who comes to your home to inspect for a buyer.

And finally on both parties, always question an appraisal if you think something is off. In this market appraisers are extremely busy and may put out rushed reports which could be to your detriment.