You sold your home for $50,000 above list price?! How can that even be possible?? Well, right now believe it or not, it’s happening. We are seeing multiple offers and houses being sold for above list price.
So if you read our previous blog, you found out one strategy to make sure you actually get the KEEP the amount of money you go into contract for. There are a few more things to consider when selling your house for significantly more than it’s possibly worth, or considerably more than the neighbors have recently sold for.
The first was 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 if they aren’t willing to remove the appraisal contingency altogether is to see if any of the buyers are willing to give you a specified amount that they are willing to pay above the appraised value, obviously not to exceed the agreed upon purchase price.
Well, how can this be helpful or why would it matter? You see, if someone really wants your home, they may be willing to pay any amount for it, but as we learned before, the bank is only going to loan what it appraises for. If the buyer removes the appraisal contingency all together, it’s sorta 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 and how big of a check they may have to write, so many buyers are afraid to do this. Another option is to have them agree upon a specified amount that they agree to pay over the appraised value if the home does not appraise.
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 most likely will not appraise at that amount. The 1st. option would be to counter out the appraisal contingency. The 2nd option would be to ask the buyer how much they would be willing to pay over the appraised value. So, let’s just say, the buyer says they are willing 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 over what the home appraised for, but that would 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 Shore Prime Properties. We’ve helped and protected so many Jersey Shore residents just like you and we’d love to help you too.