Once you decide to buy a property, it does not matter where it is or what kind of issues real estate market is experiencing, you will need to deal with home appraisals. It is a good thing if the result of the home appriasal is in your favor, however, that is not always the case and there are times that the result of the home appraisal is low. Getting a low appraisal can really hinder your purchasing process and at times it can even be a deal breaker. One example is that if you look at La Jolla homes for sale and made an offer on a particular La Jolla real estate property that is within your budget and at the same time also is within the preapproved amount that was given to you and still got a low appraisal then you need to decide. One option that you have if you really want the sale to push through is for you to pay the difference in amount not covered by the loan. Your second option is to ask for another appraisal stating your reasons why you think the house deserves a second a look, however, if the result is the same then you need to check and find a different property.

In order for you to understand more why lenders give a low appraisals, here are a few reasons that you should know and can also use when checking a property:

1. Multiple offers have been placed on the property which creates an artificial inflation on the house. This kind of situation will make it harder for the lender to consider the big loan amount when compared to the real value of the house. The lender will have a hard time to sell the house because it's value is not as high as it is being projected to be.

2. If there are a lot of people selling their property on a given location rather than pople buying a property there. This will make a decline in the market value of the houses in the area.

3. the house that you want to buy is overpriced. If there are any major reason on the report of the appraisal why they have given it a low appraisal then chances are the property is overpriced. This can be an opportunity for you to open the negotiations with the seller.

4. The appraiser is incorrect on it's evaluation. EVen if it is an extra step and it might add to the long process of your purchasing process, there are times that it is a good thing to ask for a second home appraisal.

These are only a few factors why lenders give a low appraisal result. Here's what you can do, once you get a low appraisal:

1. If you want the sale to push through then pay the difference. You will still be able to borrow money from the lender but you need to pay the difference to get the purchasing process moving.

2. As mentioned if there are no major reason why the rsult is of the appraisal is low, then you can use this to negotiate to the seller and lower down the price of the house. Chances are the property is overpriced.

3. As mentioned, a lot of times getting a second request for an appraisal is good. This will eliminate the possibility of any errors during the first appraisal.

4. In asking for a second appraisal you should put into writing the reasons why the property should get a higher value. Check similar properties and compare them with the property you want to buy. These things are given high regard by the lenders and really review and check what you put in your request for a second appraisal and why you think the property deserves a higher appraisal.

5. Cancle the purchase and look for other properties. If the seller really would not give you any help or cooperation on your negotiation, then cancel the sale. This is also where contigency in the contract is very important and should not be left out when you and the seller are making the purchase agreement. You can put as contingency if the appraisal is low then you can cancel the purchase; this way you can get your earnest money back and will have no problems canceling the deal.