What Are the Consequences of a Low Appraisal When Buying In NYC?

Nick at Hauseit (https://www.hauseit.com) reveals what happens if you receive a low appraisal when buying a home in NYC. Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. How it works: https://www.hauseit.com/how-it-works/
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If your appraisal comes in low, your lender will still provide you with the loan. However, they will only issue it typically in the amount of the existing loan to value times the appraised value.

If you are going to finance 80% of $1 million and the appraisal comes in at $950k, the lender will only give you a loan in the amount of 80% x $950k. This creates a shortfall in terms of the money you'll need to close.

Under a traditional mortgage contingency, a low appraisal will give you a potential out to cancel the deal and recover your deposit. If you want to stay in the deal, you may be able to renegotiate the purchase price with the seller. Alternatively, you could just apply with two lenders. That gives you two appraisals and therefore two chances to have an appraisal come in at the contract price.
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Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://www.hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014. Learn how it works: https://www.hauseit.com/how-it-works/

Hauseit Group LLC, Licensed Real Estate Broker
Tel: +1 (888) 494-8258
Email: [email protected]
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