Why Use A No Appraisal Contingency

Why Use A No Appraisal Contingency? So it’s an insanely hot, super savvy sellers market. Hey try saying that three times. Super savvy sellers market. So it’s crazy right now and if you’re selling your home, we’re seeing sellers get multiple offers on their homes as many as eight to 15 offers. So you can be super confusing and also exciting at the same time, but I totally get it. Just this week alone we had two houses that went under contract and we had between seven and 15 offers on each house. Hi, I’m Rich Barnes owner, broker of Realty Experts in West Dallas, Wisconsin, 53214. Now how do you know what offer to choose? Is the highest offer always the best offer? Well, you’re wondering or possibly considering selling your home, then listen in. Many sellers think that the highest offer is the one that they should take. Well, the highest offer doesn’t always mean it’s the best offer. Let me explain why. If there’s a loan involved, the 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 this matter? Well, because the bank will only loan based upon the appraisal value. So let’s break this down into layman’s terms. If a buyer offers $350,000 for a home and the appraisal comes in at 340,000, the bank will only loan on the $340,000 price. So there’s a difference of $10,000. So that means that the buyer would have to come in with the difference. So, understand that the buyer still has to come in with their closing costs, their down payment, possibly have enough money in the bank for reserves. In addition to coming in with that additional $10,000 to cover the difference in the appraisal value. So how does this pertain to a seller and what do they need to do to protect themselves? Here’s one of the things we do here at Realty Experts, one of the best options for a seller is to counter in no appraisal contingency. Meaning that the buyer will pay the difference between the appraisal value and the purchase price. When doing this make sure number one, that they have the ability to pay the difference. Number two, they still have enough money to qualify for all the fees that are associated with the purchase. And number three, they actually really understand what that means. There’s a lot more issues to be concerned with when this happens and I’ll be here all day explaining. And I know it’s just a lot of mumbo-jumbo and you shouldn’t have to worry about all this stuff. And trust me, there is a lot more. So find out when you’re selling, how to make sure you end up with the amount of money when selling your home that you and the buyer mutually agreed upon. Call us here Realty Experts. We’ll do all the negotiating and we’ll make sure it’s a clean and easy deal. And stay tuned for more tips on making sure you get the money you think you will be get, be getting when you’re selling. And always feel free to reach out, Why use a no appraisal contingency? I’m here to help. Thanks, and you have a great day.

Why Use A No Appraisal Contingency?
Connect With Us!

If you're looking to buy or sell a property connect with us today!

How Can We Help You?

  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *