We’re selling our house in a “hot” housing market. We have a few offers around $35k over asking. Prior to us listing the house we did a HELOC and needed an appraisal that came at about $345k. Since then we replaced the roof, pool liner and pump, and garage door. We listed the house at $360k and got 7 offers, highest one is at $396k.
So we didn’t even think of that appraisal at all, I don’t know why, until our agent said today that all is well and good but the house needs to appraise correctly. Now I’m spiraling out as we don’t want to lose out on buyers. We’re NOT going with the highest offer, but the offer we do want to accept is 15k over asking.
Thoughts?
Appraisal potentially low – what’s next?
byu/OwlStrikeHunting inRealEstate
Posted by OwlStrikeHunting
8 Comments
go with the highest offer and drop the price 15k+ or whatever to sign a no appraisal contingency.
Do you have any offers that have waived the mortgage or appraisal contingency?
why would you not go with the highest offer?! that’s crazy to me. if you have an extra 20k you don’t want i’ll take it? if you’re worried about the appraisal, then counter by removing the appraisal contingency?
You need proof of funds that a buyer offering over your asking price can make up any appraisal gap. They’re offering over the amount you deemed to be market value so they need to understand that’s on them to figure out how to pay for the difference.
You wait. An appraiser should be told of time on market, number of offers, and $$$ of top offers.
It’s different from a HELOC, where comparables/upgrades lead to a predictable price. Selling involves the marketplace, competition (aka multiple bidders).
Appraisers aren’t trying to kill deals FYI. Don’t panic.
Do any of the offers include an appraisal gap waiver? How similar at the highest and one you are accepting besides price. 20k is alot to give up before an appraisal is even scheduled.
it’s possible that an appraisal done for a HELOC will come in lower than one done for a solid asking price in a competitive market. it’s not always the case but i’ve sold and refinanced several times over the years and sometimes the appraisal “fits” where it needs to fit when the numbers generally don’t look too crazy. i would take the highest offer and negotiate between the new appraisal and where that is, unless they have appraisal gap contingency. see if the highest few offers can compete on that ground.
No point in freaking out about an appraisal that hasn’t happened yet. If the market is that hot, the appraisal may be a non-issue. Also, if the market is that hot, it’s less likely that you would lose ALL bidders to other deals if the first deal falls through. With that said, have your Realtor confirm which buyers are pre-approved for what amount, and can have cash to close if there’s an appraisal gap.