What!? You sold your home for $30,000 above list price! How can that even be possible??
Well, right now believe it or not, it is happening!
So, if you saw my previous video you found out one strategy to make sure you actually get the KEEP the full contracted offer price. There are a few more things to consider when selling your house for significantly more than it may be worth, or, considerably more than the similar homes in the area have recently sold for.
The first, as you saw in my previous video is to see if the buyer would be willing to remove the appraisal contingency altogether. However, many buyers aren’t willing to do that. So, another alternative is to see if any of the buyers are willing to give you a specified amount they are willing to pay above the appraised value, obviously not to exceed the agreed upon purchase price.
How can this be helpful? You see, if someone really wants your home, they may be willing to pay any amount for it, but, as we learned, the bank is only going to loan based on its’ appraised value.
If the buyer removes the appraisal contingency all together, it’s kind of like writing a blank check. They can’t be certain as to what the home will appraise for, so, they have no idea what the difference is, so many buyers are afraid to do this.
Another option is to have them agree upon a specified amount they will pay over the appraised value if the home does not appraise at their offer price.
Here’s an example. Let’s just say that you agree on a sales price of $600,000, and, as a seller, based upon the advice of your agent, you know the home may not appraise at that amount. Let’s just say, the buyer agrees to pay 15,000 over the appraised value. If the home only appraised at 580,000 that means they would be willing to pay $595,000 or $15,000 over what the home appraised for.
It would also mean the seller would get $5,000 less than what was originally agreed upon in the initial contract.
Again, there’s a lot to consider when selling your home, it’s not always just as cut and dry as it may seem. So, what’s the answer, how do you protect yourself????
Call a professional, call us here at One World Realty, we’ve helped, and protected many home
sellers just like you, and we’d love to help you too. So, give us a call on the number on your screen and click below for more informational videos.
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