Special offer

Waiving the Appraisal Contingency

By
Real Estate Broker/Owner with Capital West Realty, Inc BRE# 01717774

Many markets are now seeing reduced inventories and West Sacramento is no exception, but how do you get your buyer's offer accepted when multiple offers are being submitted? In these times of multiple offers, most are above the listing price, but there is a low chance that these high offers will be supported by an appraisal. Especially if there are no sold comps to support this price, but the home may be better than any of the sold comps that are available, so your buyer is willing to pay the higher price and feels that the value is there, whether it be better upgrades, larger lot, swimming pool, etc.

One way to get noticed in these situations is for buyers to waive the appraisal contingency. Of course, the theory is that this contingency is in place to protect buyers from paying too much as well as protect lenders from loaning more money on a house than it is worth. However, if your buyer is aware of these risks and absolutely wants the house and wants to pay the offered price regardless of what an appraiser says, then this will get you noticed. If the offer is financed, the buyers will need to pay the difference in cash, if the home does appraise below their offer, but there are many buyers out there now ready and willing to do that.

 

What do you think of this approach?