The stars aligned, and you finally found the house of your dreams. The house has all of the space you need, has a great backyard, is in the perfect location and comes at a price you can afford. The sellers accepted your offer, and things seem to be moving forward. The day of the appraisal rolls around, and your progress comes to a halt when the house appraises for less than the price you had offered to pay.

If you are new to the home buying process, this may not seem like a big deal at first. However, it can impact whether or not a financial institution will loan you the full amount needed to cover the mortgage. In this type of situation, traditional lenders will typically loan up to 80% of the appraised value of the house – not 80% of the contract price.

The unfortunate reality is that you are not alone in this scenario. This happens to homebuyers more frequently than anyone wants to talk about, so you do have options when it comes to being able to purchase the house.

1. Review the appraisal with a professional.
Before you get in a panic, take the time to have a professional review your appraisal. Your realtor may be able to offer some insight as to whether the appraisal missed some higher comparable sales that should have been included or other errors were made. In certain instances, it may make sense to move forward with a value appeal, where the appraiser will reevaluate the house and explain why certain comps were not used. Highly motivated sellers may even be willing to cover the expenses for a second appraisal, in hopes that it will come back higher.

2. Use this as an opportunity to renegotiate.
If your appraisal came back low, the seller is probably just as distraught as you are. With a deal so close in sight, you can use this as your chance to renegotiate on the price. If the sellers really want to make things happen, they may be willing to drop the price down to the appraisal amount.

3. Cover the difference with cash.
Cash can be your saving grace in this type of situation. If the sellers are unwilling to lower the price and you cannot live without this home, now may be the time to use that cash you have been putting away. If this really is your dream home, it is a decision you will not regret.

Henderson Properties is committed to providing real estate services that positively impact the quality of people’s lives. If you are in the Charlotte area, are thinking about buying a new home, and are looking for professional guidance, speak to one of our real estate agents today by calling 704-544-0253. Browse local homes for sale by visiting www.hendersonhomescharlotte.com.