How Creative Negotiation Helped Save a Home Sale After a $40,000 Low Appraisal

A low appraisal can put an entire home sale at risk.

That is exactly what happened during the sale of 7735 W Lockland Court in Peoria, Arizona.

 

The home was under contract when the appraisal came in nearly $40,000 below the agreed purchase price.

There was no simple fix.

Instead, we had to look at the entire transaction, find several places where we could create value, and negotiate our way toward a solution that would keep both sides moving forward.

In the end, we were able to find approximately $25,000 toward that $40,000 gap and keep the deal together.

The appraisal came in nearly $40,000 low

Our first step was to see whether the appraisal could be reconsidered.

We gathered comparable sales and other information that supported the contract price. Because the appraisal was ordered by the buyer’s lender, the formal reconsideration had to be submitted through the buyer’s side of the transaction.

There was another challenge.

The community was only about seven years old, and relatively few homes had sold there. That meant there simply were not many strong comparable sales available to support the higher value.

We could provide the best information we had, but we could not create comps that did not exist.

At that point, we knew we needed to look beyond the appraisal itself.

We started looking for value in other parts of the deal

Instead of treating the situation as one $40,000 problem, I started asking a different question:

Where else can we create value?

One opportunity was on the buyer’s side of the transaction.

I spoke with the buyer’s agent and asked whether they would be willing to reduce their commission as part of the effort to keep the sale together.

That adjustment created approximately $10,000 in additional savings.

It was an important part of the solution, but we still had more ground to make up.

Then we negotiated the sellers’ next home

At the same time, my sellers were already under contract to purchase a new-build home.

So I went back to the builder’s representative and renegotiated that transaction too.

We were able to secure an additional $10,000 reduction in the purchase price of their new home.

Afterward, the builder’s agent sent my client a text that said:

“You have yourself a great realtor.”

That may be one of my favorite compliments because it came from the person sitting on the other side of the negotiation.

The result: approximately $25,000 toward the appraisal gap

By working different parts of both transactions, we were ultimately able to create approximately $25,000 toward the nearly $40,000 appraisal shortfall.

There was not one dramatic concession that fixed everything.

There were several solutions.

Together, they were enough to keep the sale moving forward.

7735 W Lockland Court ultimately closed at $655,000, less than three months after it was listed.

More importantly, our sellers were able to complete the sale of their existing home and move forward with the purchase of their new one.

Why negotiation matters even more in today’s market

Getting a home under contract is only part of selling a house.

What happens after the contract is signed can matter just as much.

Appraisals can come in low.

Inspections can uncover problems.

Buyers may ask for concessions.

Financing can change.

A seller’s next purchase may depend on the first home closing.

And in a market where buyers have more choices, sellers do not always have the leverage to simply say no and wait for another offer.

That is when experience and negotiation become especially important.

Good negotiation is not always about getting one person to give you everything you want.

Sometimes the better strategy is to look at the whole transaction and ask:

• Where is there flexibility?
• Who can contribute?
• What costs can be reduced?
• Is another transaction connected to this one?
• What solution gives everyone enough reason to keep moving forward?

That is what happened here.

We did not find one $40,000 answer.

We found several answers that added up to a workable solution.

What should a seller do if an appraisal comes in low?

A low appraisal does not automatically mean a home sale is over.

Depending on the situation, a seller and their real estate agent may be able to:

• Review the appraisal for errors.
• Provide stronger comparable sales for reconsideration (this must be done by the buyer).
• Renegotiate the purchase price.
• Ask the buyer to bring additional cash.
• Restructure concessions or other transaction costs.
• Look for savings elsewhere if the seller is also purchasing another home.

Every transaction is different.

The key is knowing which options are realistic and how to negotiate them without losing the buyer in the process.

Real-world results matter

It is easy for a real estate agent to say they are a strong negotiator.

I would rather show you what that looks like when a transaction becomes difficult.

In this case, a nearly $40,000 low appraisal created a serious problem.

By negotiating across multiple parts of the transaction, we were able to create approximately $25,000 in value, keep the sale together, and help our clients continue with their next move.

That is the part of real estate you do not always see in the listing photos.

And it is often the part that matters most.

Thinking about selling?

The Sakala Group helps buyers and sellers navigate their next move in North Phoenix and throughout the Phoenix Valley.

That includes the straightforward transactions, but also the ones where an appraisal, inspection, financing issue, or difficult negotiation puts the deal at risk.

Because getting a home under contract is only part of the job.

Getting it successfully to closing is what matters.

Thinking about selling your home? Let’s talk about what today’s market could mean for your move.

 

About Shelley Sakala

Shelley Sakala is a North Phoenix Realtor® and Team Lead of The Sakala Group at Real Broker. She helps buyers and sellers navigate their next move in North Phoenix and throughout the Phoenix Valley, with a focus on local market knowledge, strong negotiation, and getting transactions successfully to closing.