Can I Sell My House for More Than the Appraisal? What Really Decides the Price

You do. Nobody can make you list at a particular number. I bring you the analysis of what has sold that's similar to your home and show you where every number comes from, but the list price is your decision.

After that, the real price takes shape between you and the buyer: they make an offer, you negotiate, and you sign a contract with a price. Up to this point, nobody has done an appraisal.

The appraisal is an opinion of value from a licensed appraiser. When the buyer is using a loan, their lender orders the appraisal after the contract is signed. The appraiser visits the house, compares it to similar recent sales nearby, and writes down a value.

The lender uses that value to decide how much to lend. Generally speaking, it lends on the appraised value or the sale price, whichever is lower. It won't lend against a number higher than the appraisal supports.

If the buyer is paying cash, there's usually no lender appraisal, because there's no lender. They can order one if they want, but it isn't required.

This is what people mean by "the appraisal came in low." There's a gap between the contract price and what the lender will lend against it. There are several ways to close that gap:

1. The buyer covers the difference with their own money, on top of their down payment.
2. You lower the price to the appraised value or somewhere in between.
3. You split the difference.
4. You ask for a reconsideration of value, with similar sales the appraiser didn't use. Sometimes the value changes. Often it doesn't.
5. The buyer walks away, if their contract gives them that option in this situation.

Which of these applies depends on the contract you signed and on how much each side wants the deal. That's why, when I review an offer, I don't just look at the price. I also look at what happens if the appraisal comes in low and how much cash the buyer has to cover a gap.

Yes, in two common cases:

• The buyer is paying cash and agrees to the price.
• The buyer has the cash to cover the gap and wants the house enough to use it.

It happens, especially when there are several offers on the same house. But it isn't wise to set your price counting on it. A price well above what nearby sales support usually brings fewer showings, and a house that sits on the market too long starts negotiating from behind.

Also yes. It's your house, and you can accept any price you choose. Sometimes it makes sense for timing, because you need to sell to buy the next one. But selling fast doesn't have to mean selling cheap. I explain why in if you need to sell fast to buy the next one, do you have to sell cheap?

This trips up a lot of people, and understandably so, because all three get called "value":

• The county value (from the appraisal district) is used to bill property taxes. It isn't the sale price, and the buyer's lender doesn't use it.
• Zillow's number, or any other website's, is calculated by a computer that has never been inside your house. In Texas, sale prices aren't public, so those sites are working with less information than it seems.
• The buyer's appraisal is done by a licensed appraiser, for the lender, after the contract is signed.

None of the three is the price of your house. The price is what a real buyer agrees to pay and their lender agrees to back.

With three things, before listing:

1. Similar, recent, nearby sales. The same ones the appraiser will look for. I pull them from the MLS, which has prices the public doesn't see.
2. The house as it really is. Real measurements, the improvements that were actually made, and what's still missing. If a room was added, it gets measured.
3. What can lower the value without you noticing. An old roof, or a problem that will show up in the buyer's inspection. It's one reason some owners inspect before they list.

With that, the price you choose has evidence behind it. And if the appraisal still comes in low, we already have the sales to ask for a reconsideration.

Can I sell my house at whatever price I want?

Yes, you can ask whatever you want. What a buyer pays depends on what they offer, and if they use a loan, on what their appraisal says.

Who pays for the appraisal?

Usually the buyer, as part of their loan. Their lender orders it, and the appraiser works for the lender, not for you or the buyer.

Can I be home when the appraiser comes?

You can. What helps most is having a sheet ready with the improvements you've made and when; I make sure the appraiser has it.

Does a low appraisal cancel the sale?

Not on its own. It opens a negotiation. Whether the buyer can walk away depends on the contract you signed.

How do I get an appraisal before I sell?

You can pay for one yourself, but the buyer's lender will order its own anyway. To start, an analysis of similar sales gives you a clear picture without that expense.

You set the price. The buyer decides whether to pay it. And if they use a loan, their lender decides how much to lend based on the appraisal. A price that's well supported from the start spares you the second negotiation and lets you sell calmly.

Want to see what price your house can support?

If you'd like to start on your own, you can request your home's value at veronicayeary.com/home-value or download the seller guide. If you'd rather go through it together, call or text me at 469-441-8890, or email veronica@veronicayeary.com. No commitment, nothing to sign.

I am Veronica Yeary, Realtor®, CRS · ABR · SRS · CIPS, with All City Real Estate DFW in Dallas-Fort Worth. I fight for your number, with evidence.

469-441-8890 · Call or text · veronica@veronicayeary.com · Email