I currently have a home for sale and have accepted an offer over asking price. My concern is that the comps are bad. So how have you seen appraisals in this hot market. Have there been a large increase in miss appraisals?
Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
5y
@Davin Jeffers did the buyer sign an appraisal waiver? Did you get multiple offers? In a hot market just getting the contract is 80% of the battle for buyers. They either pay the difference or would have to walk away. If you had other offers you can contact them again and get another contract. This is why accepting the highest offer isn't always the best option.
Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
5y
@Davin Jeffers did the buyer sign an appraisal waiver? Did you get multiple offers? In a hot market just getting the contract is 80% of the battle for buyers. They either pay the difference or would have to walk away. If you had other offers you can contact them again and get another contract. This is why accepting the highest offer isn't always the best option.
Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
5y
@Peter M. I will second with Peter said. Most sellers are idiots and always accept the highest offer and that will often put them in very difficult positions down the line when the buyers can't close for one reason or another, usually because of the appraisal or some kind of financing issue.
I currently have a home for sale and have accepted an offer over asking price. My concern is that the comps are bad. So how have you seen appraisals in this hot market. Have there been a large increase in miss appraisals?
What most people don't know is that an appraisal isn't what the property is worth today. It is one person's OPINION based on similar properties that have Recently Actually Sold. An appraiser isn't going to risk his license and a lawsuit from the bank guessing where the market is going. So, when a property has an offer above asking, keep in mind the appraiser is basing his opinion on what has already sold, not what someone is willing to pay. Unfair? Maybe, but it's the bank's rules and if you want their money you play by their rules.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
When ever there’s an offer above asking, and certainly ever multiple offers situation, there’s already been a disagreement on the property’s value. The seller thought it was worth x, the buyer thought x + y. As a seller can you really get mad if the appraiser agrees with you and say you’re right, it is worth x. The buyer is trying to overpay.
Next time make sure you ask for addendums how much over appraisal each buyer is willing to pay. It may show a lower offer is stronger.