Mutiple offers are back in Northern Virginia. I've been dealing with these situations with my listings all month, and they are getting more intense. As we've shifted from a Buyer's Market to a Seller's Market, we are still not seeing prices increase. Thank God, they do seem to be stabilizing.
I've noticed a trend for these buyers that are desperate for that perfect house. Pump up the offer price. On paper, it looks great. The sellers start to salivate. More money! Yea!!!! But when you look at appraisal trends, you need to have a reality check. Appraisals can make or break a deal. And just because a buyer is offering above list price, doesn't mean the appraisal will be there to support the offer.
Buyers are writing way above market value, knowing that sellers will accept the highest offer. And that if the appraisal comes in low, the sellers will be faced with marketing the property again, or reducing the price. It's a gamble for both sides of the deal.
When presenting multiple offers to your sellers, think about the appraisal. Try to get your sellers mentally prepared for the harsh reality of market value. They will thank you later, and realize just what a professional you truly are.
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