What happens when the home doesn't appraise in San Antonio, Texas?
You've heard the horror stories, right? You are buying a home in San Antonio, you look and look and then find the perfect one! You make an offer, they accept, you are now under contract. After that you are moving right along thinking everything is GROOVY, you are so close to closing & then BAMMMMMMMMMMMMMMMMMMM! The appraisal comes in low.
What do you do?
Don't freak out! There are a few options in this scenario that can work out in your favor. Working with your agent & lender can be beneficial.
FIRST, review the appraisal with your agent. Since you paid for it, it is your decision to release it to the selling agent or not. If you decide to go this route, you can ask the seller to lower their purchase price to meet the appraised value given by the appraiser. Let's say you are purchasing the home for $300,000 & the appraisal comes back at $295,000, there's a $5,000 difference. If they don't agree to lower their price move on to the your second option. In the case of an FHA loan, it is in the seller's best interest to lower their price since that appraisal will stay with the home. Conventional appraisals don't.
SECOND, ask the lender to contest the appraised value with the appraiser. They can do this by providing more comparable homes to them. Sometimes this helps, sometimes it doesn't. The truth of the matter is, you can have three different appraisers appraise the home & get three different values. If the appraiser doesn't budge your last option is to.....
THIRD, pay the difference yourself. This is painful, I know. Most folks who end up in this situation feel stuck. They have come this close, they expect to close in days & then they are thrown for a major LOOP!
Of course your agent is going to assist you in making the right decision in this case! Keep your fingers crossed & wait for the words, "IT APPRAISED!"