Another hurdle is the appraisal. A low appraisal can sink a deal on the spot. Several years ago, low appraisals killed more deals than not, as the market was declining practically by the week. Now, thankfully, appraisals are much more reflective of the current state of the market as we are recovering finally— although there are cases where the agreed upon price is higher than the appraisers opinion or the current comparables. If the buyers are paying cash, they technically won’t need an appraisal, but if they are savvy they probably have included an appraisal contingency in the contract. This will allow them to cancel the contract if the appraisal is low, and if you will not lower the price to the appraised value. If they are financing the home, the home must appraise for at or higher than the sales price, or a) you must lower the sales price or b) they must bring additional funds to the table to cover the difference (if their lender will even allow them to do so). Otherwise— the contract will be cancelled.
Click here for a copy of the standard uniform appraisal report form.
Hilary and Jay are REALTORS® based in in Oro Valley, AZ. We also proudly serve the surrounding areas of Marana, Catalina and Tucson. Want to sell a home in Oro Valley? Interested in learning more about buying and selling real estate in Tucson and the surrounding areas? Want to know how much your Tucson, Marana, Catalina or Oro Valley home is worth? We are ready to be your advocates through the entire process—contact us anytime!