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Old 05-24-2018, 04:18 PM
 
Location: Seattle
5,086 posts, read 3,891,948 times
Reputation: 2999

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Happens all the time in Seattle, the form is 22AD, the "increased down payment in the event of low appraisal" form. People routinely offer to cover $30K, $50K or more of a gap. This is crucial when representing buyers in very competitive situations. Often you can even do that and lose to a cash offer.
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Old 05-24-2018, 08:03 PM
 
Location: San Francisco Bay Area
4,205 posts, read 2,194,190 times
Reputation: 8174
Quote:
Originally Posted by Coldjensens View Post
My daughter is buying a house in Aurora CO (Denver). They made an offer for XX dollars or $3000 over appraisal. Lets say the offer is $100,000.

If the house appraises for $90,000, they buy it for $93,000. If it appraises for $190,000 they buy it for $100,000 (or $103,000 - that is not clear to me). I have not seen or heard of this process before, is this normal in a super hot market?
Significant overbids are quite normal in super hot markets.
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Old 05-24-2018, 09:04 PM
 
Location: Denver CO
19,153 posts, read 10,191,149 times
Reputation: 28043
Quote:
Originally Posted by homesinseattle View Post
Happens all the time in Seattle, the form is 22AD, the "increased down payment in the event of low appraisal" form. People routinely offer to cover $30K, $50K or more of a gap. This is crucial when representing buyers in very competitive situations. Often you can even do that and lose to a cash offer.
except of course that isn't what this thread is about. Adjusting the down payment based on an appraisal still has the buyer purchasing a home for the previously agreed upon price, it's just the financing that is different which only impacts the buyer. This thread is a question about the price of the home being adjusted based on an appraisal, not the down payment
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Old 05-25-2018, 08:40 AM
 
Location: Cary, NC
31,723 posts, read 55,591,792 times
Reputation: 30300
Quote:
Originally Posted by Coldjensens View Post
Real estate must be a frustrating business, at lease for the first few years until you get accustomed to the roller coaster or learn not to celebrate emotionally until the commission is in the bank.
Gotta "maintain an even strain... "
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