Appraised value of a home


Hey guys, in this current market where homes are selling way over list price and firm without any conditions, there are a few things that you should keep in mind. As a listing agent, we work towards getting the best possible offer for the sellers, both in terms of price and conditions. Towards that end, you will see majority of the listings these days intentionally have a set offer date to drive the price higher and secure a firm offer. Chances in this market are, as a buyer you will end up putting in an offer with no conditions and much higher than the list price. As a buyers agent I want to remind you that the bank will fund the mortgage based on appraised value only and there is a chance where the appraised value comes in lesser than the purchase price. In such a scenario, you will have to make up the difference, and the chances of that happening in the current environment are more pronounced. With a firm offer in place, one cannot simply walk away by forfeiting the deposit. You end up running the risk of further litigations by the seller. Please feel free to call or message me any for your questions. Thanks so much.