

5,396,509
I'm with Sandy Padula and Norm Padula, JD, GRI - I've seen lots of properties appraise at a contract price that people were concerned about. And I've seen lots of sellers insist on a condition that buyer will buy regardless of appraisal.
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Bob "RealMan" Timm
Minot, ND
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Lisa Von Domek
Dallas, TX
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Fred Griffin Florida R...
Tallahassee, FL
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Sandy Padula & Norm Pa...
, CA
5,585,039
then there had better be language in the offer to purchase that reflects the fact that the buyer will pay the difference in cash at closing....
the sellers can pass on that deal and wait for a cash buyer to eliminate that appraisal....
the seller doesn't have to take that deal.
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Michael Jacobs
Pasadena, CA
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Lisa Von Domek
Dallas, TX
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
1,759,637
That is a roll of the dice as the appraisal can work against them and the buyer might end up paying more.
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Lisa Von Domek
Dallas, TX
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
637,764
Absolutely, and then put in an appraisal contingency. The listing agent better explain what that means to their seller, though, before accepting that offer.
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Lisa Von Domek
Dallas, TX
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
613,494
Today I learned that my clients over full price offer has a short appraisal. Multiple offers, great house, great neighborhood.
I expected that, as did the listing agent, buyer and seller. At time of contract, buyer and seller agreed to split an appraisal shortage if needed. The buyer would pay 1/2 of shortage in cash, seller would reduce the price by the other half.
The appraisal came in for less than expected, but I think buyer and seller will work it out,
This was not a game just to win, or play games. It was a creative effort to get a house for the buyers that they loved.
Eve
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Tony and Suzanne Marri...
Scottsdale, AZ
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Nina Hollander, Broker
Charlotte, NC
321,664
Yes, I'm sure there are agents that do this. I have also seen an instance in which the seller said, You determined the value when you placed your offer." "Pay the difference" That agent actually got the home sold for higher than appraisal. Not all buyers have the extra $$ to make this work.
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Lisa Von Domek
Dallas, TX
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Nina Hollander, Broker
Charlotte, NC
4,796,638
Some might but in our market, there are many offers that are submitted without a loan or appraisal contingency. If a property has an appraisal issue any difference will need to be made up by the buyer(with the necessary proof that this can be done accompanying the offer). This is especially true when there are multiple offers and financed offers competing against all cash/quick-closing offers.
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Becca Rasmussen
Highlands Ranch, CO
1,014,938
Huh, sounds like you ran up against this?
Could be a double edged sword though -if it does the buyer must pay the higher price LOL
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Jessie Cochran
Panama City, FL
3,764,591
Here the crazy prices seem to be appraising! So that's not always the best strategy!
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Nina Hollander, Broker
Charlotte, NC
3,224,722
it's the rarest of occassions that offers are written for over list in my market and I can't remember the last time an appraisal didn't come in at value here. I think it was dec. 2014
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Nina Hollander, Broker
Charlotte, NC
2,707,832
Yes, I certainly do...but we know how to resolve that little ploy, don't we Sally K. & David L. Hanson
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Bob "RealMan" Timm
Minot, ND
2,564,804
I have not heard of that stradegy but then again I just don't think that way myself Sally K. & David L. Hanson
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Nina Hollander, Broker
Charlotte, NC
1,269,775
Often the buyer need find another lender and pad the difference. In our area homes are still sold way way over listed price.
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Nina Hollander, Broker
Charlotte, NC
1,097,755
I don't believe it - I KNOW it to be true as a fact. I've heard many buyers agents say "Don't worry, there's an appraisal contingency to protect you..."
Just as bad as listing agents presenting way below market to incite a bidding war.
I wish people would just price at a fair market value and let nature take it's course...too many games in this industry and it leaves consumers with a bad taste in their mouth.
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Nina Hollander, Broker
Charlotte, NC
1,209,321
I've used this strategy as a buyer's agent in this market. It's sometimes the only way to get a home under contract for a buyer today. So far things have worked out. I do explain to my buyers that if they're buying a home today, they aren't in the driver's seat.
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Nina Hollander, Broker
Charlotte, NC
1,153,799
It isn't a tactic of preferred use but certainly it continues to be used. I believe!
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Nina Hollander, Broker
Charlotte, NC
3,988,144
I agree there is some double talking going around and you have t be really careful especially if you are representing the seller. Those kickout clauses take you back to square one.
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Nina Hollander, Broker
Charlotte, NC
937,038
I have seen that tactic used before. It's a good way to get offer rejected.
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Nina Hollander, Broker
Charlotte, NC
414,077
It's not really a lot different than listing agents underpricing a home to drive multiple offers over asking. The house is worth what the house is worth and how buyers/sellers handle an appraisal contingency varies from place to place (and even neighborhood to neighborhood, depending on your market).
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Nina Hollander, Broker
Charlotte, NC
2,719,063
Interesting gamble. I hope they are prepared to eat the overage if the appraisal comes in.
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Nina Hollander, Broker
Charlotte, NC
1,114,393
Yes . . . but in a changing market, that's riskier than 00 on the roulette wheel.
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Fred Griffin Florida R...
Tallahassee, FL
6,774,529
Sounds like a risky strategy, but quite possible.
I do prefer a cash offer...
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Nina Hollander, Broker
Charlotte, NC
49,265
Here offers are multiple and yes offers are sent for over the asking price, but the seller does have to know it might look good, but as said before the appraisal has to come in within the parameters for funding.
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Nina Hollander, Broker
Charlotte, NC
1,157,847
Buyer agents often write offers over asking price in multiple offer situations which are common in my area in today's market.
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Nina Hollander, Broker
Charlotte, NC
150,466
Here you have to write for over asking on many homes, or you are not in the running.
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Nina Hollander, Broker
Charlotte, NC
352,976
I truly hope no one would do that and fortunately have not had that happen. If it did happen I would also blame the lisitng agent as it is the duty of the LA to price the home to sell as well as appraise. I have seen situations where buyers thought they paid too much and try to get price reduced after the inspection thinking they paid too much...but that is another topic.
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Fred Griffin Florida R...
Tallahassee, FL
6,058,458
The appraisers around Denver are trying to keep up with values. Even if a buyer writes way over, usually they offer $xxxx over appraised value. At least the seller knows they got the highest and best price for their home.
8,244,666
797,229
We all have written offer above market value. Sometimes the buyer comes up with more money other times the seller lowers the price. There are also times that the escrow cancels. We do the best we can to get our clients their home.
1,547,084
YES!! Going high over asking is a frequent tactic. Offer high and negotiate it down with appraisals and repair or credit requests. When that happens I put "seller will not lower price if house does not appraise. Buyer to make up difference between appraised value and purchase price" into a counter offer. It lets them know I'm on to them and "Ryan don't play that!"
98,873
I believe people do try that, yes!
Whether or not they are successful in actually talking the seller down afterwards, who knows. In this Denver-area market, the seller might just move on to another offer from a buyer willing to overpay.
1,466,257
Sally K. & David L. Hanson I think this is a very unprofessional tactic. I would advise my sellers to counter the offer expressing the buyer to pay the difference, if the property does not appraise.
3,417,759
YES i am seeing a pattern especialy from a firm in my area and then they also use the inspection to beat down the price.
226,120
If the seller took the financial contingency out of the contract, that would solve that problem. With FHA and VA , you have to have financial contingencies. You do not with conventional financing. You question was do we believe it. Yes I believe it.
3,074,716
4,434,277
2,538,789
Good morning Sally. I have actually heard agents make that statement, pretty poor thinking.
1,658,108
Maybe, but it is a risky game and I would not do it, since sellers probably have few back ups and I just wasted everyone time with with strategy.
4,322,295
Sally, listing agents are smart - they want the appraisal contingency waived....
5,205,906
I echo what Nina Hollander says. If they want the house, and there is competition, they may have to pony up
1,525,616
I think that is a pretty risky practice if that is what they are doing.
3,986,529
I believe there are agents out there that will do un-ethical stuff to their benefit
5,293,320
921,504
Of course!
It is the listing agents job to anticipate such action and get the bank out of the negotiations first.