Hi all: I hope you're well and had a nice weekend!
Last night I received a phone call from a client of mine who put her home on the market and then left for vacation. Upon her return she had 6 offers to consider. My client smartly called her lender and asked me my opinion. She knew that the appraisal was key and could determine what offer was the best one to accept.
After checking comps. for similar homes, we reached the conclusion that the highest priced offer wasn't the best one. We didn't feel confident we could have the home appraised for that much. So that's the bottom line. If value can't be reached via an appraisal, what good does the highest offer do? At least that's a lender's perspective!
I know it's enticing to take the highest offer. Everyone wins in most cases. But, again, if the appraisal comes in low that's a problem and often a deal killer. For my client, she'll probably take the all cash offer even though it was lower.
The encouraging news if you're a seller is we appear to be entering into a lot of multiple offer situations. But do your homework. Take the one where value is possible. Appraisals and underwriting are still pretty strict and I would hate for you to have a deal go awry because you took the highest and best offer.
I wish you well if you're planning on putting your home on the market and as always you are always welcome to
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