As you been reading the value of homes in our area has been on the rise - or rather the multiple bid situations we are constantly in, have driven up the sales price of a home.
So you are so excited - you received an offer $20,000 more then your list price - as you received 20 offers and BAM you got a competing bid 20 grand over your list price! You are drinking champagne and you are celebrating, you think your agent is the bomb. You tell all your friends you “sold” your home for $20,000 more than you ever expected. What's not to be happy about?
You may be celebrating a bit too early, if your buyer is getting a loan - an appraiser will be called to appraise the home. In some cases we do not have enough recently sold homes, so coming up with a fair market value is difficult. You may get an appraisal at the price your Realtor told you to list the home for. Now there are negotiating tactics you can use - but this is between you and your Realtor. However if selling in the 1st time home buyer range - many times there is no solution other then reduce the home sales price to meet the appraisal.
So when shopping for a loan or looking at multiple bids on your home consider this -
For the home buyer - you want to be a strong buyer - you shop the rate of course and hopefully you ask your Realtor if they have any experience with the lender you are wanting to use - or get a referral from a friend who had a great experience - but just like hiring a person to work for you - interview lenders - the one question you may have thought of is this.
Do you use appraisers that are trained and focused on getting the right value?
If you are the home seller - you may want to pose a question to all competing offers - Especially if your offer is over list price or if you are priced aggressively
Other questions to consider
Ask their average close times
Ask how what percentage they were late getting the deal to the table from the original close date on purchase agreement
Of course - consider a local lender #localfirst bigger is not always better
If you would like to meet with a member of the Gordon Group and discuss our creative solutions to this process - feel free to reach out to us - we would be happy to help!
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