How to Avoid a Potential Deal-Breaker
Happy Monday Active Rainers,
Adrienne has a post that I liked about avioding a potential deal-breaker.She brings up some valid points. One of my favorites is to always Check The Comps!
A hot topic in the real estate world: appraisals that are too low. The National Association of Realtors reported that 18% of real estate professionals saw contracts fall through when lenders rejected loan applications/ appraisals came in lower than expected. Appraisers keep taking the heat for more transactions being canceled and delayed, 11% of agents reported they had a contract cancel in the previous 3 months because of low appraisals.
The appraisal mess-ups are a difficult deal-breaker to avoid. The process is entirely out of agent and buyer/seller hands. But don’t give up! There are a couple of things buyers can do to minimize the risk. Check the comps. The comparable homes that have sold in the area are a good indication of where your offer should be. A real estate agent is super helpful with this. DO NOT make an offer bizarrely above the average range of the comps, even if the property has multiple offers on the table, unless you are prepared to deal with a low appraisal a few weeks out.
Next, work with a local mortgage broker who originates loans through it’s own bank. These lenders have the ability to choose from a smaller pool of appraisers, ones that they know are well-versed in the area.
Home-buying can have a lot of difficult moments to it. All you can do is get a good agent, be smart, and do your best to avoid deal breakers.
Adrienne Kessler Keller
Williams Realty
CA DRE#02155323
(310)722-6699
www.beverlyhillsmoves.com
Comments (1)Subscribe to CommentsComment