Today was offer deadline on a home in ardenwood Area . Listed price was 1.13 million . We put 1.15 . Seller received 5 offers including ours with highest being 1.176... Selling agent gave everyone a chance to see if they can go higher. We said we will go in at 1.18 and now are very strong contenders . Here are the issues though : 1. The appraisal may come only upto 1.11-1.13 as not much comps available . We only have extra 50-60K to cover the gap but other buyer has 100 K cash to cover per seller agent . 2. Not sure how desperate other buyer is but from a cash perspective he has an edge over us . Seller will review offers tomorrow and put a counter. Only some luck can save me if other buyer doesn’t go higher than 1.18. But luck and hope is not a strategy So any advice is appreciated as we badly need this home and are very close Thanks in adv
Not much else you can do, dont over extend and need the cash to cover delta in offer and appraisal. Write a strong second letter if you haven't already. Walk away if you have to, there will be other's. Ideally buy off market if you can do there's no competing bids.
If you think the bank is gonna bust you over an appraisal difference of less than 5%.... Go in with what price you think will work for your family. Don’t worry about a few dozen dollars more in mortgage a month.
I mean I’m really not sure how these appraisers work . You mean they won’t bridge that gap during assessment ?
You ever notice that typically appraisals come in at whatever the asking price of the home is? They have a spreadsheet and tweak some values. That’s it.
You could try removing some contingencies and make the pot sweeter for the seller. Recently did this myself.
These are all non contingent and ours too . It’s just a numbers game
Would refrain from playing it then, if I were you. Even if you win, you’ll most likely stretch thin for comfort. Just an opinion though, I know a lot of factors will be at play as you work through this.
Sorry but you too close to the last highest, what if someone bids 1.2
It is hard to realize it now, but this may not be the best option if you are that close to over extending. The home buying process can be brutal, but live to fight another day. Especially if it keeps you financially sound. When the market does turn down again, which it soon will, you will be very satisfied in your decision of holding back during this time. But, to answer your question, the person that is strongest financially will win. The sellers are in this to make money and not friends. You can always offer to waive all contingencies and roll all closing costs into you loan, but I would not recommend it. Whichever path you choose, good luck. I know what it is like to be in that position. It will work out for you one day, if not today.
Thank you my friend. I guess you are right. Live to fight another day
Depends on how much you want the house, but from the numbers you gave I’d recommend from my personal experience that you do not extend the offer. Don’t chase the peak.
The reason most appraisals come in at the sales price is because the sales price was justified and that is the problem the appraiser was asked to solve for. You buyer rep should be present to inform the appraiser of the competitive bids that came in. Market value is determined by the market. Appraisers look at the recent historical solds, other pending sales may have some influence and the appreciation rate of the market, also the competing bids submitted to the appraiser by the selling agent will allow for justification of the sales price over the historic sales within their guidelines. I would think you will be the winning bid with the highest sales price unless it is an inexperienced sales agent who does not know to give copies of the competing bids to justify the price. And doesn’t know how to handle bidding competition. I’m really surprised that you know so much detail about the competing bids. That is not always the norm. Good luck. I know it it nerve wracking time. What you described sounds like market value. However an appraisal is one persons opinion of value. And market value just like anything goes up and down at various times. 🤞I hope all goes well for you. PM me if you have any other questions. I teach real estate in another state so rules do vary accordingly.
Thanks. How will buyer rep present all the offers? I mean it’s the seller rep who gets these offers and will they give it to buyer rep ? The problem is 2 buyers are at 1.18 and both need the house badly. Seller has countered for 1.188.. if appraisal comes in at 1.13 plus I am ok to bridge the gap but less than that I’m screwed . So not sure what to do . Pls suggest
It’s the listing agent that would share the competing contract offers with the appraiser. It’s smart for the the buyers agent to be there and make sure the appraiser knows about it if the listing agent got busy. It 🤞should appraise then. Each state has differing regulations. Like the financing terminology in our state contracts gives the buyers an out if the financing falls through due to appraisal being too low. So your not screwed. Either the seller adjusts to the price that can finance w your max or you are able to get out of the contract and get deposit back in my state contract. I hope this helps.
My advice is to find a more desperate seller. I’ve never seen someone make a good purchase when chasing. There will always be a better deal
Add a buyer letter gushing over the house and how you will take care of it with your family pics and stuff. Sometimes personal human connection helps.
Buyer letters do not always play well. Plus now it’s determined letter like that may violate fair housing laws.
Indian sellers. What do u expect lol
Open your eyes dude, pack up your bag and run away from this place. Life’s so much easier
Thanthabks for the great advice