Today we’re giving you a behind-the-scenes look at a tactic buyers are using to win offers that can cost you, the seller, precious time and money when not handled correctly. Here’s how it goes: A seller lists their home in this fast-paced, low inventory market, and instantly they’re bombarded with multiple showing requests, then multiple offers soon after. While this kind of attention is ideal for the seller, it can also give them an overwhelming feeling of pressure and anxiety to make the right decision.
Common sense says the highest offer is the best offer… right? Well, not necessarily. We’re seeing some buyers throw out ridiculously high offers, knowing full well that the home will never appraise for that price. Their goal: flash a big number to win out over the competition, then renegotiate with the seller when that appraisal does come in low. What can you do as a seller to avoid taking the bait?
As your trusted Realtors, we have your solution. We institute a predetermined agreement on what will happen in the event of a low appraisal—even before the buyer’s offer is accepted. The most beneficial scenario for sellers is having the buyer cover the entire cost of any appraisal delta. Of course, many buyers give us pushback on this but are willing to either split the delta or bring a specific amount of funds to closing in the event of a low appraisal.
This approach brings a major negative to the forefront in the beginning and provides a collaborative agreement between both parties that results in smooth sailing the rest of the way. It’s real estate made simple, and that’s what we’re all about here at the Suburban Team.
If you’re considering a home sale or purchase soon and want to get an experienced team of competent, caring, and decisive professionals in your corner, give us a call today. We’d love to help you navigate this hectic market and make a decision you’re proud of.