One of the main obstacles to closing on the sale of a home in recent years is the fact that the appraisal to the home may come in low. As a result, the lender will deny the loan application based on “insufficient collateral”. For sellers, this news can be devastating as in many cases they have reduced their asking price already in order to get to the point where a contract now exists. Further reducing the price to be consistent with the appraisal is hard for many sellers to accept. This article from The WallStreet Journal offers tips for sellers expecting a visit from a bank appraiser to follow to minimize the chance of a low appraisal. Read article.
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