Sellers, Beware of high prices from your buyer

By
Real Estate Agent with Weichert Realtors Appleseed Group, 2043 Richmond Ave. S.I.N.Y. 10314. office phone 718-698-9797, Appleseedhomes.com -

Sellers, Beware of high prices from your buyer

Why would a buyer over bid on a unit that is on the market?  Because they want to be the winner on the unit.  Maybe its priced low or just right and it's getting a lot of action, the high priced bid will definitely get attention.

 What are the pitfalls of accepting a high offer?

Depending on how high over the asking price the offer is, it may not appraise.  Now what do you do with that offer?  You can lower your price to the appraised number, or you can ask the buyer to up their down payment money, or agree somewhere in between.

So what's the problem you ask?  Well, here is my opinion.

In Staten Island, the appraisal comes around in about 3 to 4 weeks after the offer is accepted.  If you can't agree on a new price with the buyers, the deal my fall apart.  So it's BOM, Back On The Market.  Now you have lost 3 to 4 weeks of prime marketing on your sale.  Did you lose a better buyer?  You may never know, and if that "better buyer" had an offer closer to the appraised price, the delay could cost you money.

Now new buyers will ask "What is wrong with that house"?  Most likely they will NOT ask if the unit didn't appraise.  Savvy buyers are asking good questions, they need to hear good responses.  Savvy sellers know what their unit is worth and look at all the factors with the buyers, not just the offering price.

Comments welcome.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Location:
New York Richmond County Staten Island
Tags:
know what your house is worth
selling price
asking price

Spam prevention
Show All Comments
Rainmaker
1,553,427
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

We are seeing more multiple offer situations here.  That is the reason I always include an appraisal addendum with my buyer offers.  It is a bit scary when prices rise and multiple offers drive them higher.  Good advice for a seller, Ken.

Mar 11, 2015 05:34 AM #1
Ambassador
2,607,113
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Price isn't always the best line item on a contract, unless the buyers are putting down enough to get over the appraisal hurdle.  The cleaner the contact the better the chances of closing contract

Mar 11, 2015 12:06 PM #2
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
536,206

Kenneth Cole

NYS Licensed Real Estate Salesperson
Ask me a question
*
*
*
*

Additional Information