Hey it’s Chels here with Lake Norman Mike & Co. If you’ve been keeping up at all with this insane real estate market, you’ve probably heard a few words quite frequently: “MULTIPLE OFFERS”, OH! and “APPRAISAL ADDENDUM.”
So what does this mean for you as the seller, exactly?
With multiple offers being the common scenario lately, there is one part that is particularly intriguing, and that’s the hoax of the appraisal. Anyone can say, “I’ll pay $50,000 over asking price, NO PROBLEM” to win in a multiple offer situation. BUT – what does that mean to you, as the seller? Are you sure that if the buyer is getting a loan, that they’ll cover the difference if the property doesn’t appraise at $50,000 over ask price?
I’ll back up here and explain – a lender will not lend a buyer a mortgage for a property above what it appraises for. Therefore, if you, as a seller, are under contract on a property that’s listed at $1,000,000… the buyer says they’ll pay $1,050,000… yet it appraises at $1,000,000….who’s covering the difference here? If you didn’t get an appraisal addendum, signed by the buyer, stating they’ll STILL pay up to contract price if the home doesn’t appraise, you could have a buyer that walks on to the next one, and your house could be back on the market again.
Mike and I want to keep the HOAX out of your deals. Let us help you recognize what is the real deal in a multiple offer situation, versus what’s not, and get you to the closing table, with a solid sale price!
We’ll see you on the lake!!