When buying a home, one of the most important steps is the home appraisal. The home appraisal is an objective evaluation of the property's value, conducted by a licensed appraiser. However, if the home appraisal comes back lower than expected, it can throw a wrench in the buying process. Fortunately, buyers have options. Here are four things you can do about a lower-than-expected home appraisal:

Appeal the Appraisal

If your appraisal seems low, you have the right to appeal the appraisal. The appeal process typically involves providing additional evidence to support the property's value, such as recent comparable sales or an assessment of repairs needed to bring the property up to standard. The buyer's lender will likely have a specific process for appealing an appraisal, so it's important to work closely with them during this process.

Ask for a Second Appraisal

Another option is to order a second appraisal. While this will cost you additional money, it can be worth it if the first appraisal seems significantly lower than expected. The second appraiser may have a different opinion of the property's value, which can help you negotiate with the seller. Keep in mind that lenders are not mandated to honor your request.

Negotiate with the Seller

If the appraisal is lower than the agreed-upon purchase price, you can try to negotiate with the seller. The seller may be willing to lower the purchase price to match the appraisal, or they may be willing to make repairs or upgrades to the property to increase its value. If the seller is not willing to negotiate, you must decide whether you want to proceed with the purchase at the higher price or walk away from the deal.

Scrap the Deal

If none of the above options are satisfactory, you can choose to walk away from the deal. While this can be disappointing, it's important for buyers to remember that buying a home is a significant investment. If the property isn't worth the asking price, it's better to walk away than to take on a mortgage that could put you in a financially precarious situation.

When you are ready to buy a home, I would love to meet with you about your home buying options. We can review your finances and decide which home loan program is right for you. Call me today to set up an appointment.