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Appraisal 1200


June 2021

In a competitive housing market, it’s not uncommon to see home prices creep up. With limited inventory and multiple offers on homes, the price you’re willing to pay for a home may end up being higher than the appraised value. This is known as an appraisal gap and it can be a deal-breaker for mortgage lenders who use appraisals to make sure the home is worth the money they’re lending you.

For example, if you bid $300,000 on a home but the appraisal comes in at $250,000, your lender will only give you a mortgage for the lower amount. Real estate experts estimate between 10-20% of appraisals come in lower than the sale price. But in today’s competitive housing market, more homes are selling with multiple offers and the chances of an appraisal gap is increasing.

When there is an appraisal gap you have five options.

  1. Renegotiate the deal. For many, this is a great starting point. Buyers can ask the seller to reduce the price or split the difference. However, in a competitive seller’s market, this isn’t always a possibility. It’s entirely possible that someone else’s offer, that doesn’t burden the seller, will win out in this scenario.
  2. Pay the difference. In highly competitive markets this is the most common choice. If you’re hesitant to ask for a renegotiation for fear of missing out on the deal, you can offer to pay the difference between the purchase price and the appraised value. “But remember, you need to pay the difference on top of your down payment,” said Aron Clark, vice president and senior mortgage banker with Dart Bank. “If the appraised value is $80,000, but the purchase price is $100,000, you still need your down payment on that $80,000, as well as the $20,000 difference.”
  3. Use a portion of your down payment. You may also be able to use a portion of your down payment to cover the difference in price. However, if doing this makes your down payment less than 20% of the purchase price, you’ll be on the hook for private mortgage insurance (PMI). You’d also have to work with your lender to make sure you still qualify for the loan with these adjusted terms.
  4. Draft a rebuttal. It doesn’t happen often, but an appraiser may adjust their valuation if you and your REALTOR® can provide them with relevant comps that support the higher purchase price.
  5. Walk away. If you’re unwilling or unable to use any of the other options listed here, your best bet is to walk away. While it’s easy to get swept up in a bidding war, or jump through hoops to buy the home of your dreams, over-paying on a home may leave you in financial trouble down the road.

The length of time you plan to live in the home, the urgency of the purchase, and market trends will all play a part in determining whether or not it’s even a good idea to buy a home over the appraised value. Your REALTOR® can help you analyze these factors and decide if this is the right purchase for you.

Vote for HONK for Non-Profit of the Year


HONK has been selected as a finalist for the Cincy Magazine Nonprofit of the Year Award and we would really appreciate your vote!

Voting will be open until 9/5/2021. Users can vote once a day so feel free to vote more than once and forward this to any friends or family members who would also like to support us.

Below is the link to the Cincy Magazine website along with instructions on how to select HONK as there are many categories and organizations this year.

1 - Follow the link below.

2 - Click the tab that says, Basic Needs.

3 - Scroll down until you find HONK under the Home Rehabilitation Programs category.

If you have any questions, give us a call at (859) 581-4665 or email Phil our Community Outreach and Development Coordinator at This email address is being protected from spambots. You need JavaScript enabled to view it.

Thank you for your continued support!


This year's NKAR charity is Sweet Cheeks Diaper Bank and we need your help!!!


Sweet Cheeks Diaper Bank and Tidal Babe Period Bank are the ONLY non-profit diaper and period product banks in the area.  Neither of these products are covered by any federal aid programs.  1 in 3 families struggle to afford diapers and 1 in 4 menstruators struggle to afford period products.

They will accept any open and unopened packages of clean and unused diapers and period products.

NKAR has a drop-off bin in our office and we would love for you to consider donating any of these items in our bin. 

We are open Monday-Friday from 8:30 a.m. to 5:00 p.m. for drop-off.

For more information on Sweet Cheeks visit their website:

Why give small

Make an Impact That Transforms Lives!

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HONK has openings for two AmeriCorps members in construction

These are full-time volunteer service roles with benefits, thanks to our partnership with the Homeless & Housing Coalition of Kentucky. Each Homes for All AmeriCorps Member will help build, rehabilitate and repair homes to assist HONK in its mission to help low-income families and individuals reach the goal of stable homeownership through programs of education and support.

Each member will receive a small living allowance (roughly $1,258/mo.) and have an opportunity for basic healthcare during their year of service with HONK.  They will also receive an education award of $6,345 when they have completed the program (1700 hours) that can be used toward the payment of student loans or continuing education. The education award can also be passed on to children or grandchildren.

This is a full-time one-year commitment starting August 1, 2021. Background check, drug screen, and valid driver's license are required. Those interested should contact David by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or phone 859-581-4665.