Unfortunately nothing is normal about the current housing market… Not only do buyers need to be prepared to compete with multiple offers, but their strategy has to be perfectly suited for their financial situation. What happens if a property does not appraise at the offer price? I hope other realtors are preparing their clients for that scenario… The bank will only make a loan for their appraised value of the property, but then what about the rest?
In this case it becomes the responsibility of the buyer to make up that difference. The APPRAISAL GAP is the amount of money the buyer needs to produce to keep the deal a reality. Deciding how to balance your down payment, appraisal gap and additional liquidity can be the formula to making transactions happen. When I was reviewing offers for a listing today the first thing I looked at was which buyers had enough reserves to make sure the transaction would close on schedule.
Make sure to reach out to me if you have any questions about navigating what is going on with real estate today. This week I have been representing buyers, sellers, investors, and referrals.
