When your house sells with multiple offers and for $35,000 over asking price, everybody wants to know…will the house appraise? Before accepting that very attractive offer, you need to ask yourself lots of questions.
First of all, waiting to look at all offers after being on the market for 3 days is probably going to be your first problem. Don’t be greedy. You know what your house is worth…if you sell it for $20,000 over asking price, will the house appraise? Probably not. Don’t blame the appraiser. He’s just doing his job. Don’t expect him to put some unrealistic value on your house when it doesn’t exist. He’s working for the buyer and the lender. He’s going to say, “Show me the comps you used to arrive at this price.” Do they exist?
Appraisers need proof. In order to complete their paperwork and assign a value to your home, they need to be able to show 3 other comparable properties that have sold for your selling price in the last 3 months. There again, ask yourself…will the house appraise?
I sold Rick and Karen’s house by the end of the first day on the market to a cash buyer and for $15,000 over asking – with no appraisal. Cash buyers don’t require appraisals because there is no lender involved.
In that same transaction, we had one offer of $23,000 over asking that was going to be financed. As an experienced Realtor, I thought that one was going to be a problem and shared my concerns with my sellers.
How important is the appraisal?
Your appraisal is going to be done very late in the game…maybe a couple of weeks before closing. If this is the case, you still need to do everything you can to make your house look its best. Impressing the appraiser is especially important if your house sold for over asking price.
The foremost thing on your mind should always be will the house appraise? While the appraiser is still going to compare apples to apples, I’ve had them tell me, “That house sure does show well.” BINGO! That will usually raise the price to an extent. That’s where home staging comes into play. The showings may be over, but next to your showings to nab the perfect buyer, the appraiser’s opinion of your home is the next most important showing there is. Get this one wrong and it could not only botch your sale, it could make a big difference in your next purchase.
Understanding the home selling process
Have a plan with your agent before your house comes on the market. IFTTT, is what I call it. If this, then that. Work through some scenarios of what might happen. If you have a brand new agent, they may not have enough experience of what will happen. But an experienced agent should be able to walk you through what to expect when your house sells with multiple offers, without multiple offers or with offers less than asking price.
Have that discussion before you come on the market and definitely before you’re running high on emotion and you’re unable to make a good decision based on facts. My average house sells the first day on the market because I set it up to happen that way. It’s part of my marketing plan so I pretty much know what’s going to happen, I expect it and share how it’s going to happen with my sellers. So, the details may change but my sellers are never surprised because we already had that conversation.
What are your expectations when selling your home?
It always surprises me when sellers have no clue what’s going to happen when they sell their home. It’s not your fault…you might be a first time seller or repeat seller. It doesn’t matter. Real estate changes constantly and your agent should inform you of what to expect when your home comes on the market.
Having a game plan is a big part of will the house appraise? You should always think things through before you make some potential huge mistakes. If your house doesn’t appraise for the price it sold for, be ready for that as well. Don’t make your next transaction dependent on every dime you’re expecting to receive on your house. You might not get what you thought and could end up not having enough money to close on your next home. I hear horror stories other agents tell. The job of your agent is to guide you through a successful transaction. Remember, the results you get will be because of the agent you choose. Choose carefully!
If you are selling your home, want a smooth transaction, a house that appraises, and more money in your pocket, call me at (913) 515-3250 or contact me here.
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