Regardless of how you feel about the situation, you need to know that you do have options at configuring Del Aria Investments Group…. You can either relist the property with a lower starting sale price, refinance your mortgage, or take out a second mortgage to make up the difference. In some cases, the seller may not budge and refuse to negotiate, so you may have no choice but to walk away.
Relisting with a lower starting sale price
If the appraisal of your home is too low and the offers are not enough to make the home a viable purchase, you may need to lower your starting sale price. In this case, you can either dispute the appraisal and get a second opinion or wait for the market to turn around and sell your house fast for cash.
In some cases, a seller may be able to keep the starting sale price after multiple offers. In such a situation, a new buyer may be willing to pay the difference between the first and second offers, and the second appraisal may come out higher than the first. However, if the seller is in a rush to sell their home, re-listing with a lower starting sale price may be the best option.
If an appraisal comes in too low, the next step for you is to negotiate with the seller of old home. Sometimes, the seller may not agree to a lower starting sale price, which will mean that you need to renegotiate or back out of the sale.
Re-listing the home with a lower starting sale price if your appraised value comes in too low is the easiest way to keep the sale from stalling. It makes the lender and buyer happy and allows you to get the home sold. However, it could also mean you lose out on the appraisal gap, which is the difference between the appraised value and the sale price. If you need the money from the sale, this strategy might not be for you.
Taking out a second mortgage to make up for the difference
If the appraised value of your home is too low, you may not be able to negotiate with the selling of home to get the price you want. You may have to pull your home off the market or hope that someone will buy it for a lower price. If you cannot negotiate, you may have to take out a second mortgage to make up the difference.
Another option is to pay the appraised value. This will give you more negotiating room with the seller, who may be hesitant to lower the price. It may also allow you to use the money from your down payment to close the gap.