There is a reason why homeowners sometimes fear home
appraisers, particularly during a divorce, and that is because home divorce
appraisals can come in lower than homeowners expect. In situations where a home
divorce appraisal is part of a home sale, a lower than anticipated home divorce
appraisal can potentially kill a deal. Even when there are no plans to sell the
home, and one of the homeowners chooses to stay for purposes of keeping
children settled in their same school, for example, a low home divorce
appraisal can wreak havoc on the financial calculations made during negotiation
of a divorce settlement.
Even if your home divorce appraisal comes in lower than you
expected or, in some circumstances, especially during a strong housing market,
is lower than the agreed upon sale price of the home, you can still recover.
Here are four ways to regroup after a low home divorce appraisal.
1. Appeal. Even if you prepared for your home divorce
appraisal thoroughly by presenting your home divorce appraiser with all of the
information you had about your home, including improvements and information
about the home which may not have been readily available or visible to your
home divorce appraiser, you could still appeal the home divorce appraisal after
completion.
2. Get a second opinion. Not all divorce appraisers have the
same knowledge or experience. Some home appraisers are specialists in certain
areas while others are not. Just as you would ask for a second opinion from a
doctor before electing for open heart surgery, so, too, can you hire a second,
or even third, appraiser to evaluate your home.
If you are going through a divorce, many homeowners fail to
realize that it is advantageous to hire a home appraiser who is familiar with
divorce issues. A home divorce appraiser will recognize and appreciate that
your home divorce appraisal also gets used for purposes other than the sale of
your home, including the calculation of your divorce settlement. He or she will
understand the timeline of a divorce and how every delay can potentially cost
divorcing homeowners money while causing unnecessary stress.
3. Negotiate. Especially during a housing boom where
multiple bidders bid on the same property, causing a sale at or above the
asking price, a home divorce appraisal may come in lower than the sale price.
Since mortgage lenders want to ensure that, in the event a borrower defaults on
his or her loan, that the mortgage company will be able to recover the amount
of their loan, a mortgage company may be hesitant to underwrite a mortgage
where the sale price is higher than the appraisal. Receiving a home divorce
appraisal that is lower than a home’s sale price is often the quickest way to
kill a deal. To save a deal, the seller can negotiate with the buyer to make up
the difference by adding money to the purchase price or meet somewhere in the
middle by contributing money as well.
4. Lower the home’s sale price. If a home divorce appraisal
comes in low and a seller is unwilling to add money to the purchase price, a
seller has the option to lower the home’s sale price so that it is in line with
the home divorce appraisal. That way the buyer’s mortgage application is more
likely to be approved and the home’s sale concluded. Though the seller might
believe he or she is leaving money on the table, especially when a divorce is
pending, the longer it takes to sell the marital home, the longer it can take
to conclude the divorce proceedings, which can potentially cost the homeowners
more money in the long run.
The important thing to remember about your home divorce
appraisal is that it is not the final word. A home divorce appraisal is, in
essence, a guideline for ensuring that a home is valued correctly, regardless
if the home is going to be sold or not. If your home divorce appraisal is not
to your satisfaction, remember, interpretation is subjective. That said, the
best way to ensure accuracy is first to hire the most competent home divorce
appraisal specialist for the job.
Want more articles on real estate Divorce
Appraisals.
Call Nathan anytime at 503.349.3765
to get started and to get all of your questions answered. We look forward to
talking with you and putting your mind at rest. We want to help you get through
to the next stage of your life.
Nathan Bernhardt
Bernhardt Appraisal
Portland, Oregon
Bernhardt Appraisal
Portland, Oregon
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