Contrary to Popular Belief
Contrary to popular belief, when buying a home the highest offer is not always the best offer. There are many things that go into an offer but the bottom line is what is most important to the seller and what meets their needs the most.
In today's market when an appraisal will be involved, we have to consider what the home will appraise for. Anything over the appraisal will cause an issue as lenders will only loan on the appraised value. If the appraisal comes in lower than the purchase price offered, the seller has to reduce their price, the buyer has to agree to pay the difference, or they can possibly meet somewhere in the middle. but it is a big issue than often kills the deal. Now imagine what that is like with a sh
ort sale where the bank ultimately makes the decisions on the sellers side. By this time in the process they have already set their mind on and approved the purchase price as is.
ort sale where the bank ultimately makes the decisions on the sellers side. By this time in the process they have already set their mind on and approved the purchase price as is. Another thing to consider is closing time. Does the seller need a longer escrow period or are they OK to get out quickly as can happen with a cash offer.
How strong is the offer? Is it cash or will it have a loan? If there is a loan involved what kind of loan: conventional, VA, FHA? How much earnest money is being put down? I recommend to my buyers a minimum of 1% of the purchase price they are offering.
Contrary to popular belief the highest offer or the shortest closing time is not always the best offer.
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I am a REALTOR® in El Dorado Hills with Lyon Real Estate. I love living in El Dorado Hills, where homes with views have become my passion. Working with both buyers and sellers, my concentration on homes for sale includes not only El Dorado Hills, but also Folsom and the Cameron Park vicinity. For more information on me or our wonderful area visit my website at www.DeeDeeRiley.com or email me at driley@golyon.com. When you're ready to sell or buy a home – I would love to help! To read what my clients have to say about me and my service, visit my Client Testimonial page.
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By DeeDee Riley 2012 *All Rights Reserved*Contrary to Popular Belief
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