When selling or buying a home, two of the most nerve-wracking steps are the appraisal and the home inspection. Both play a crucial role in finalizing the deal—and both can bring unexpected challenges. An appraisal that comes in lower than expected or an inspection report loaded with surprises can feel like a dealbreaker. But with the right approach, these setbacks don’t have to derail your transaction.

Why Appraisals and Inspections Matter

• Appraisal: Determines the fair market value of the property. Lenders rely on it to ensure they’re not lending more than the home is worth.

• Inspection: Provides a detailed look at the home’s condition, uncovering potential repairs, safety hazards, or hidden maintenance issues.

Both protect buyers and lenders—but they can create stress for sellers if the results aren’t ideal.

When the Appraisal Comes in Low

A low appraisal means the lender may not finance the full agreed purchase price, leaving the buyer to make up the difference—or the seller to lower the price.

What Sellers Can Do:

1. Request a Review or Rebuttal
   If you believe the appraiser missed key comps or undervalued the home, your agent can challenge the report with updated comparables.

2. Negotiate with the Buyer
   Work with the buyer to meet in the middle—maybe you lower the price slightly, and they bring extra cash to closing.

3. Offer Seller Concessions
   Covering some of the buyer’s closing costs may help balance the deal without slashing the sale price.

4. Relist or Wait
   In a hot market, sometimes it makes sense to hold off and find another buyer willing to pay the difference.

When the Inspection Uncovers Surprises

Inspections often reveal issues—sometimes minor, sometimes major. From leaky roofs to outdated electrical systems, unexpected repairs can make buyers nervous.

What Sellers Can Do:

1. Fix Critical Issues
   Address safety hazards or big-ticket problems like roof leaks, HVAC issues, or plumbing defects. These repairs reassure buyers and help keep the deal alive.

2. Offer Repair Credits
   Instead of making repairs yourself, you can offer the buyer a credit toward closing costs so they can handle the work after move-in.

3. Negotiate Which Repairs Are Essential
   Buyers may ask for everything under the sun, but not every item is worth fighting over. Focus on critical issues and be flexible on minor ones.

4. Disclose and Reprice if Needed
   If the buyer walks away, disclose the inspection findings to future buyers and adjust your price accordingly. Transparency builds trust.

Pro Tips to Avoid Surprises

• Pre-Listing Inspection: Sellers can order an inspection before listing to identify and fix issues early.

• Stay Realistic with Pricing: Price your home based on solid comps to reduce the risk of a low appraisal.

• Work with an Experienced Agent: A skilled real estate agent knows how to negotiate through appraisal gaps and inspection challenges.

Appraisals and inspections are intended to protect both parties—but they can create stressful moments during the buying or selling process. Instead of panicking, approach them as opportunities to negotiate, compromise, and keep the deal moving forward.

With the right strategy, even a low appraisal or a surprising inspection report doesn’t have to mean the end of your real estate journey.

Matt Witte strives to be the best realtor in North Andover, MA.

Any questions about real estate, reach out to Matt Witte, North Andover Realtor, MA