David, I just went through this when presenting offers to my seller. Showing the financials (had enough cash in the bank) to cover an appraised value which is less than the offer price. This is critical when appraisal contingency is waived. Although there were multiple offers only one had enough money to cover a low appraisal.
Hi Adrian - CNBC got it right - feels alot like it did a few years ago but buyers are qualified and locking down fixed mortgages. Really think it will start to level off. Thanks Dave
Hi Kathleen - you advised your seller well - going with a buyer who can absorb an appraisal issue is key especially if you think the home may not appraise. Regards Dave
Another reason why both buyers and sellers need the advice of an honest professional like yourself Dave.
Dave, In our market buyers use VA and put nothing down and zero earnest money a lot of the time. Yes you heard me 0 EM. Actually since we are not seeing many multiple offers and have plenty of inventory this is getting to be the norm.
Hi Roger, thanks for stopping by - in this market both buyers and sellers need guidance on both sides of the transaction. Hope you are enjoying your new job!! Regards Dave
Hi Debbie, lucky you - that certainly works well in a more "normal" market. Out here VA and FHA buyers need to wow sellers on price to get offers accepted but sure that will change eventually. Regards Dave
Hi Silvia, agree especially when a seller has many offers to choose from. Regards Dave
David, We're not seeing that hot, hot market here yet. But your area is on "FIRE"!
Hi Larry/Sheila - on fire largely due to the fact that we have so little inventory but hope to see that change as higher prices bring more sellers out. Regards Dave
Dave~ great information..Strike while the iron is hot....& it is hot... & I hope it stays that way for a long long time
Larger earnest money deposits carry a lot of weight, too. I'm getting offers with $25,000 earnest money deposits. That far exceeds the 3% liquidated clause.
Hi Jon - it certainly is hot - I like a healthy market but like to see more inventory and volume but it will come . . . Thanks Dave
Hi Elizabeth - agree - larger deposits also show buyer strength and can set an offer apart from others. Regards Dave
David, the down payment plus the earnest money can set you apart! Great post and glad to see you back!
Hi Joan - agree - both are important and often buyers have the ability to increase both which can make a difference. Regards Dave
This is great advice, David. Those buyers who can afford to put more down should definitely consider that option to compete in this crazy market.
Hi Jane - crazy is right. It is one of many ways to make an offer more competitive but an important one. Regards Dave
Hi Dave - anything that can differentiate a buyer(in a good way) is wise advice in this very competitive market.
Hi David-Wild West is right, I heard on CNBC last week they were talking about the real estate market in Orange County being on fire. Hold on my friend-Adrian