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Today we are going to talk about what your agent can do for you, as a seller, to make sure you maximize the value on the sale of your property in case it doesn’t appraise.
The reason I wanted to talk about this topic today is because we have recently had some properties for sale that didn’t appraise to the price the buyers were offering. Luckily, we were able to address these issues up front before they went under contract, and were also able to negotiate a higher price in appraisal value.
What we did was counter-offer the multiple buyers on the table, and asked them to remove their appraisal contingency up front. Meaning that if the property appraised below the price they were offering, they were willing to come up with the difference in cash to make up the difference between the appraisal value and the contract price. The buyer who really wants your property will do whatever it takes to buy it.
If the gap is too big from the appraisal to the price, you can also have them remove it up to a certain amount to reduce the buyer's risk but maximize the sale of the property. Let's say the price is $500,000 and the appraisal is $560,000. You can counter them back to remove their appraisal contingency up to $10,000 dollars as well. This means that the buyer has committed up front, if the property doesn’t appraise, to pay $10,000 over the appraisal price.
At the end of the day, if you are in this situation and follow our strategy, it’s great news for the buyer and seller. If you have any questions for us, feel free to give us a call or send us a quick email. We look forward to hearing from you!
