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IN DFW, Houses are selling briskly here in many areas and we are seeing multiple offers with prices tending higher. We are leaving the time of year that there have been low sales for the last 12 months. I have 3 homes (2 with multiple offers) that are having appraisal problems. The market pressure is for increasing prices but can't see it happening with the Appraisers and Lenders being ultra conservative.
It's creating quite a problem that might adjust with better comps in 3-6 months but right now willing buyers and willing sellers are having deals not work. Grrrr....
It's starting here too. I've had a couple listings with multiple offers at or above asking. I immediately remove the lockbox and make the appraiser call me to get in the house. I bring the multiple offers with me to let them see that it's not just one overzealous person offering high on the house. I also hand them a list of all the updates that the homeowner has done in the last few years. No problems with the homes appraising yet, but a lot of holding my breath. Good luck.
It's starting here too. I've had a couple listings with multiple offers at or above asking. I immediately remove the lockbox and make the appraiser call me to get in the house. I bring the multiple offers with me to let them see that it's not just one overzealous person offering high on the house. I also hand them a list of all the updates that the homeowner has done in the last few years. No problems with the homes appraising yet, but a lot of holding my breath. Good luck.
Thats a good Idea.
I'm really glad the sellers agent didn't think to do that when I recently bought my house.
I was able to trim the price I paid by 15K because of a low appraisal.
We've been having that problem in Boise for a few months now. We've had several houses where, despite having multiple offers, we could not get the value where it should be, and had to sell for less than multiple buyers were willing to pay.
We've also had quite a few where the seller was unwilling to sell for less, so the buyer brought extra cash to closing to make the deal go through. We have no inventory here right now, so the buyers are willing to go an extra few steps when they do find a house they want.
We've also had quite a few where the seller was unwilling to sell for less, so the buyer brought extra cash to closing to make the deal go through. We have no inventory here right now, so the buyers are willing to go an extra few steps when they do find a house they want.
Same here. Have a listing that went on the market this week at $239k had 2 offers within 2 days and the highest is $2k over list price (great house). I can see an appraisal problem and been putting in these contracts that the appraisal will be complete and communicated within XX days.
this is my big fear we are in Denver and house went UC with 2 offers over list price in 2 days. It is one of the few in our neighborhood that is renovated and shows very well. Tihs will be the highest comp in years in this 'hood (bc of the market and original owner homes), but there is NO Inventory. I am hoping the fact that we had so much activity and 2 offers over list will help but I am worried about an appraiser that doesn't know the market. Our buyers loan conditions aren't until JUne 7 and they really want the house. My fear is it will appraise for some crazy low number and then the deal won't get done at all. I'll take that chance over taking a lowball price for my home though.
So is it safe to say that the only way the appraisals will increase is if they use sales where the buyer put up extra cash because the seller wouldn't move on price. Otherwise the comps will always stay the same.
how can the buyers put up more cash then? If the house doesn't appraise for their offer, wouldn't they try and negotiate it lower (we likely will not do that)? Realtors help? (FYI our realtor is not as worried as I am)
If inventory is low, and buyers love the house, and they have the cash, they might be willing to pay the extra amount to get the house if it doesn't appraise. It's all negotiation and it depends on how movtivated a seller is to sell the house. We get so many cash buyers from the bay area here that some sellers with unique (in a good way) houses will wait for cash if it doesn't appraise but the offers are there.
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