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# The Appraisal Gap Dilemma: What Franklin Buyers Do When the Home Values Below Contract Price You've found the perfect home in Franklin. Your offer was accepte
You've found the perfect home in Franklin. Your offer was accepted. Everything feels like it's falling into place-until the appraisal comes back lower than your agreed purchase price. This scenario catches many buyers off guard, especially in competitive markets where emotions run high and offers push boundaries. But an appraisal gap doesn't have to derail your home purchase. Understanding what's happening and how to navigate it makes all the difference.
Appraisals exist to protect both you and your lender. The appraiser provides an independent assessment of what the home is actually worth based on recent comparable sales, the property's condition, and current market dynamics.
The moment you receive a low appraisal, the clock starts ticking-but you're not without options. This is exactly when having an experienced Franklin agent on your side becomes invaluable.
Coming up with the difference, negotiating with the seller, requesting a second opinion, or walking away are all valid paths forward.
Franklin's desirability creates unique appraisal challenges. The city draws buyers from across the region who fall in love with the historic downtown, excellent schools, and strong sense of community.
Navigating an appraisal gap requires experience, market knowledge, and negotiation skill. Your Franklin agent brings all three to the table when this situation arises.
Yes, most purchase contracts include an appraisal contingency that allows you to exit the deal if the home doesn't appraise for the contract price. If you choose to walk away under this contingency, you can typically do so with your earnest money intact.
Low appraisals often occur when there aren't enough recent comparable sales to support the higher price, or when multiple competing offers push prices beyond what market data can justify. In active markets like Franklin, appraisals rely on closed sales data that may lag behind current market momentum by several months.
The gap can be handled several ways: the buyer can pay the difference in cash, the seller can reduce the price, or both parties can negotiate to split the difference. Your lender will only finance based on the lower appraised value, so the gap must be resolved before closing.
Yes, you can request the appraiser reconsider their valuation by providing additional information such as recent sales they didn't consider or home features that weren't properly accounted for. This requires documentation and a solid case, though it may confirm the original assessment rather than change it.
It depends on your financial situation and long-term goals. Consider whether you can comfortably cover the gap without depleting necessary reserves, if the home still represents good value at the higher effective price, and how strongly the property meets your unique needs versus your flexibility to continue searching.