Paying Above Appraised Value
With homes getting multiple offers within days being on the market, for a buyer to win the property the buyer usually has to offer well above the sellers asking price. But when that happens, the Appraisal usually becomes an issue. Now sellers are asking buyers if they are willing to pay the difference if the appraisal comes in low. Here is a quick example. Offer is at $500,000 but appraisal came in at $490,000 so the buyer would need to come up with the $10,000 difference because the buyers lender will now only lend up to $490,000.
Is this a good thing? In my opinion, No because the buyer is actually paying more for something than it is actually worth. The only time I would recommend this is if the home is unique and the buyer has to have it.
Thank you for reading and if you have any questions, please let me know. Thank you!
Cell: 858-349-2390 | E-Fax: 619-209-7597
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CA DRE # 01397640
Selling San Diego Real Estate since 2003
Paul CaparasDRE # 01397640
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