With Halifax’s real estate market continuing to heat up, and home prices regularly breaking records, it’s no surprise that lenders are becoming a bit more cautious. More and more, I’m seeing appraisals being ordered on home purchases, especially when the offer price is above list or there were multiple offers involved.
While getting an accepted offer on your dream home is always exciting, there’s one key step that can throw a wrench into the process: the appraisal.
If you’re a buyer and the appraisal comes back lower than what you’ve agreed to pay for the home, don’t panic. It doesn’t necessarily mean the deal is off. But it does mean you’ve got some decisions to make.
I’m Alisha Caillie-Fleet, a top-rated realtor here in Halifax, and I’ve walked many clients through this exact situation. Every scenario is a little different, but here are three options that buyers can take when the appraisal doesn’t match the purchase price.
1. Negotiate with the Seller
If the appraisal comes in low, one of the first things I’ll recommend is going back to the seller and seeing if there’s room to renegotiate the purchase price. In some cases, especially if the seller is motivated or the gap isn’t huge, they may be willing to lower the price to match the appraised value.
This option can save you from having to bring extra cash to the table, and it’s always worth a try. Of course, it depends on how competitive the market is and how many backup offers are waiting. I’ll help you navigate that.
2. Make Up the Difference in Cash
If the seller isn’t budging, another option is to pay the difference out of pocket. Lenders will only finance up to the appraised value, so if the home appraises for $20,000 less than your offer, that shortfall becomes your responsibility.
This is a tough pill to swallow, and it’s not always doable for every buyer. But in a highly competitive market like Halifax, some buyers choose to do this to avoid losing the home. If you’re in love with the property and feel confident about the long-term value, it might be worth it.
Before deciding, we’ll look at your financial comfort zone and long-term plans. Your mortgage specialist can run those numbers with you and make sure you’re making the best choice for your future, not just in the moment.
3. Walk Away (If You Have That Option)
Sometimes, walking away really is the best move. If you included a financing condition in your offer, a low appraisal could allow you to exit the contract without penalty. This is why I often encourage my buyers to include protective clauses like this, especially if we’re going in with a strong offer.
If the numbers don’t work, or the appraisal highlights concerns that weren’t obvious at the time of the offer, walking away keeps your options open. With the right strategy, we can pivot and find a better fit that aligns with both your heart and your budget.
So, What Should You Do?
The truth is, there’s no one-size-fits-all answer here. That’s why having a realtor who understands the Halifax market and has your back is so important.
If you find yourself in this position or just want to be prepared ahead of time, let’s talk. I can walk you through what to expect, review your financing strategy, and help ensure you’re making smart, confident decisions at every stage.
I’ve helped many clients navigate these tricky situations, and I’m here to make sure you don’t feel overwhelmed or caught off guard.
Questions? Curious about how the process works? Or wondering how to protect yourself as a buyer? Reach out anytime. I’m happy to chat, even if you’re just starting to explore your options.
Business Information:
1959 Upper Water St, Halifax, NS B3J 3N2, Purdy’s Wharf Tower 1
Alisha Caillie-Fleet- Realty in Halifax, Nova Scotia
alishasellshfx@gmail.com
902-489-4911
