Friday, June 10, 2022 / by Ameil Gill
So what happens when the value of the appraisal comes in low? In an aggressive market with pent-up buyer demand and historically low inventory, offers are being made with stronger, more creative terms, such as providing assurance that any difference between the contract price and the appraised value (or up to a certain amount of the difference), will be made up in additional cash at settlement. It's important to understand the risk involved with covering an appraisal gap, along with your options if the appraisal does happen to come in lower. There is no better time for you to have an experienced (well-connected and creative) agent on your side to explain how you can structure your offer to win the home of your dreams. You will want to partner with an agent AND lender who will share all available options, such as restructuring your down payment, adding a second mortgage, and buying-out mortgage insurance, just to name a few.
Pro tip: Speak with your lender before assuming you can actually provide"gap coverage" - you don't want to drain your entire savings account or rainy day fund in doing so. Looking for an experienced agent to help guide you and protect you in this aggressive market? Send me a message and let's chat! #realtor #realestate #realestateagent #home #homebuying #mortgage