Closing the Sale- The Appraisal Close
Appraisals have created real problems for the real estate industry. Appraisers are concerned about the possibility of additional price depreciation and their appraisals will often be low to reflect the possibility of additional drops in prices. Even cash purchases are likely to be contingent on an appraisal justifying the purchase price a buyer is paying. The end result for both agents and sellers is contracts that are put together, only to have buyer’s want to renegotiate or cancel the contract.
Sellers should be reminded that even if they were able to find that special buyer that sees the full value of their property, it is unlikely the contract will make it through the cancellation or inspections period. If this obstacle is anticipated in advance, it can likely lead many sellers to price their homes more realistically. It can also avoid having the contract fall apart after an appraisal is done because the seller is frustrated and unwilling to re-negotiate. When an agent is pro-active and deals with an objection before it arises, it allows the seller to work through the frustration in a reasonable period of time and emotion is less likely to become an issue.