It’s an insanely hot super savvy seller’s market!
It’s so crazy right now if you’re selling your house. We’re seeing sellers getting multiple offers on their homes, even as many as 15-22 offers, so it can be super confusing and exciting all at the same time.
So how do you know what offer to choose?? Is the highest offer always the best offer???? Well, if you’re wondering or possibly considering selling your home, then read this or watch the video about the HOT Seller’s Market.
Many sellers think that the highest offer is always the one they should take. Well, the highest offer doesn’t always mean that it’s the best offer. Let me explain why. If there is a loan involved, and a buyer offers you an insanely high price for your home, we need to make sure that the home will actually appraise at the contracted price.
Why does that matter?
Well, because the bank will only loan based upon the appraised value. Let’s break that down into layman’s terms. If the buyer offers 650K for the home and the appraised value comes in at 640K, the bank will only loan on the 640,000 price so there is a difference of $10,000.
So, what does a seller need to do to protect themselves?
One of the best options, and one of the things we do here at One World Realty, is for the seller is to counter with a NO appraisal contingency. Meaning that the buyer will pay the difference between the appraised value and the purchase price.
That means that the buyer would have to come in with the difference. On top of their closing costs, down payment, and still have enough money in the bank for reserves.
When doing this, make sure:
#1. They actually have the ability to pay the difference
#2. They will still have enough money to qualify for all the fees associated with the purchase
#3. They actually understand what that means.
To make sure you end up with the price that you and the buyer mutually agreed upon, call us here at One World Realty and we’ll do all the negotiating for you and make sure it’s clean and easy. Get your take on the seller’s market.
Watch the video above about the HOT seller’s market. Stay tuned for more tips on getting the most money when selling your property. Any questions?
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