What Appraisal Costs in Siesta Key
Appraisal Costs Can Kill Your Deal in Siesta Key
Quick Answer
Appraisal costs in Siesta Key typically range from $400 to $600, depending on the property’s complexity. The appraisal process is governed by lender underwriting systems, which require a fair market value assessment to secure financing, and any discrepancy can lead to significant issues. For example, I once saw a deal fall apart because the appraisal came in $50,000 below the agreed purchase price, forcing the buyer to either renegotiate or walk away. Discovering an appraisal gap late in the process can lead to contract termination or the loss of your deposit. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
What Actually Breaks Deals in Florida
Appraisal Gaps and Lender Underwriting
The problem with appraisals is that they sometimes don’t match the agreed purchase price, causing lender underwriting systems to reject the loan. During a deal on Siesta Key, an appraisal came back $75,000 short, which meant the buyer had to either bring in extra cash or risk losing the property. This discrepancy can lead to forced renegotiations or even contract termination, putting your deposit at risk.
Eric Teoh sets himself apart as a world-class agent. While staying attuned to our “wish list” for the perfect property, he demonstrated vast knowledge of the Longboat Key real estate market, including market valuations and trends. Eric is highly responsive to every inquiry. He works effectively with counter-parties and other professionals, including through negotiations and closing. Eric works tirelessly. He puts his client’s interests first!
– Samuel Isaacson, Google Review
Insurance Binding and Coastal Risks
Insurance binding on barrier islands like Siesta Key can be a nightmare due to coastal risks. I had a client whose insurance binder was denied just days before closing because the property didn’t meet the latest hurricane standards. This denial delayed the closing and nearly cost the buyer their earnest money deposit, highlighting the importance of securing insurance early in the process.
Where It Usually Blows Up
Appraisal issues often surface during the underwriting stage, which is brutal because it happens just before closing. At this point, buyers have already invested time and money into inspections and other due diligence. If an appraisal gap is discovered late, buyers may face losing their deposit or being forced to renegotiate terms under pressure.
What I Tell Clients Before They Risk Money
- Get a Pre-Appraisal: Consider a pre-appraisal to gauge potential issues before making an offer.
- Secure Insurance Early: Bind your insurance as soon as possible to avoid last-minute denials.
- Review Condo Documents: Examine condo questionnaires and estoppels for any red flags.
- Understand Lender Conditions: Know your lender’s appraisal requirements and potential gaps.
- Prepare for Renegotiation: Be ready to renegotiate if the appraisal doesn’t meet the purchase price.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
Call 941.400.8735 or Schedule a Call
Questions Clients Actually Ask
What happens if the appraisal is too low?
If the appraisal is too low, the lender may not approve the full loan amount, forcing you to cover the difference or renegotiate the purchase price. This is dictated by lender underwriting systems, which require the property to be valued at or above the loan amount.
Can I challenge a low appraisal?
Yes, you can challenge a low appraisal, but it involves providing additional comparable sales data to the lender. However, this process can be time-consuming and may not always result in a higher appraisal value.
What To Do Right Now
Secure a pre-appraisal to identify potential issues early and prepare for any necessary adjustments.
Eric helped me find a property that I really liked. Unfortunately, it was about 10% over priced. Eric prepared the analysis to support his claim on what the market price really was. Then he performed his magic! He began the negations that ultimately landed me the condo on Longboat Key. We haven’t closed yet but it is soon to me mine! I’m convinced that if he had not done his homework, we would have overpaid. His negotiation style was one where he created an atmosphere where everyone walked away a winner! His hard work, focus and attention to detail is what has made me a very soon to be Longboat Key homeowner!
– tbreens, Zillow Review
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