A low appraisal can become an important issue when selling a Cliffs of Gleneagles home, particularly when the buyer is using financing and the appraised value comes in below the agreed contract price.
Luxury properties can be especially challenging to evaluate because homes may differ substantially in architecture, lot position, golf-course surroundings, renovation quality, pools, outdoor living and overall condition.
Gary and Linda Bale of Bale Real Estate Group help sellers understand how an appraisal may affect the transaction and evaluate the available options when the appraised value differs from the contract price.
Current Homes for Sale in Cliffs of Gleneagles
What Is a Real Estate Appraisal?
An appraisal is an independent opinion of a property’s value prepared by a licensed or certified appraiser.
When a buyer is obtaining financing, the lender may require an appraisal to help determine whether the property provides adequate collateral for the proposed loan.
The appraiser may consider:
- Recent comparable sales.
- Property size.
- Lot characteristics.
- Condition.
- Renovations.
- Architecture and floor plan.
- Location.
- Market conditions.
- Other property-specific characteristics.
The appraisal is separate from the price negotiated between buyer and seller.
Why Luxury Homes Can Be More Difficult to Appraise
Finding truly comparable sales can be more difficult when individual homes differ substantially.
A Cliffs of Gleneagles property may contain characteristics that are not easily reflected through square footage alone, including:
- Golf-course surroundings or views.
- Lot privacy.
- Custom architecture.
- Extensive renovations.
- Luxury kitchen and bath finishes.
- Pool and spa improvements.
- Outdoor kitchens and entertaining areas.
- Recently replaced major systems.
That makes accurate documentation and appropriate comparable-sale analysis especially important.
What Happens If the Appraisal Is Below the Contract Price?
The answer depends on the financing and appraisal provisions contained in the executed contract.
Potential outcomes may include:
- The transaction continuing under the original terms.
- The buyer contributing additional funds.
- The seller and buyer negotiating the price.
- The parties negotiating another financial term.
- A challenge or reconsideration of the appraisal when supported by appropriate information.
- Other rights or remedies provided by the contract.
Sellers should evaluate the specific contract and seek appropriate legal guidance when contract interpretation is required.
The Original Offer Matters
Appraisal risk should ideally be considered before an offer is accepted.
Can the Appraisal Be Reconsidered?
In some circumstances, relevant information may be submitted through the appropriate appraisal or lender process for review.
Useful information may include:
- Relevant comparable sales that may not have been considered.
- Corrected factual property information.
- Documented renovations.
- Major improvements.
- Property features that materially distinguish the home from comparable properties.
A reconsideration does not guarantee that the appraised value will change.
Documentation Before Listing Can Help
Sellers should maintain records of significant renovations and improvements when available.
Those records can help Gary and Linda better communicate the property’s characteristics during pricing, marketing and the transaction process.
Preparation and Condition Can Influence the Overall Value Story
Appraisers and buyers may both consider the condition and quality of the individual property.
For qualifying listings, Bale Real Estate Group’s Certified Pre-Owned Home Listing Program includes a professional pre-listing inspection at our expense.
Understanding observable property conditions before listing can give sellers more time to address important issues and document improvements.
Certified Pre-Owned Home Listing Program for Cliffs of Gleneagles Sellers
Watch Linda Bale Explain the Certified Pre-Owned Home Listing Program
Contract Management Continues After the Appraisal
Even after the appraisal issue is resolved, financing, title, contract deadlines and closing coordination still need to be managed.
What Sellers Say About Working With Linda Bale
“Linda spent so much time with us going over comps, prices, updates to freshen up our home…she was always just a quick call or text away!”
— Leslie Waller, Plano Seller
“Linda went above and beyond in her communication and commitment. She kept us consistently informed about market trends and strategically used that information to justify the market price.”
— Laura Donovan, Seller
“Working with Linda was fantastic. She was very professional and knowledgeable. She sold our house in a matter of days.”
— Mike & Jennifer Reeves, Sellers
Frequently Asked Questions
What happens if my Cliffs of Gleneagles home appraises below the contract price?
The outcome depends on the appraisal and financing provisions of the contract and how the buyer and seller decide to proceed.
Can a seller challenge a low appraisal?
There may be a process for submitting relevant supporting information for reconsideration, but there is no guarantee the value will change.
Why are luxury homes harder to appraise?
Luxury properties may have fewer directly comparable sales and can differ substantially in architecture, renovations, lot characteristics and amenities.
Does price per square foot determine appraised value?
No. Price per square foot can provide context, but an appraisal considers multiple property and market factors.
Should appraisal risk be considered before accepting an offer?
Yes. Financing and appraisal terms can affect the overall strength and risk profile of an offer.
Selling Your Cliffs of Gleneagles Home?
Gary and Linda Bale can help you evaluate pricing, offer terms, appraisal considerations and the broader strategy needed to move from listing through closing.
Clarity First. Pressure Never.
Gary & Linda Bale
Bale Real Estate Group | eXp Realty
