Some thoughts on selling houses in this very odd market right now.
Our local Tredyffrin Easttown and Main Line real estate market is suffering from low inventory, like many other areas across the country. It is so bad in some townships that finding any comps for listings is well nigh impossible. However, there are large numbers of buyers waiting for homes to be listed and sellers are inundated with offers in a matter of hours.
But those offers may not be all they seem?
What are they offering? Fair market value or any price, but dependent on it appraising!
Fair market value is what buyer and seller are willing to transact the sale at, many buyers may offer a similar price, so that would be fair market value right, but hold on if it needs to appraise is that fair market value.
For an appraiser, he needs homes that have sold and settled, preferably within a certain distance and not more than 3 to 6 months before. A recent appraiser also wanted homes that were bigger and smaller, he could not just use bigger homes and make an adjustment.
But, didn't your offer get accepted because it was the one which would pay the highest price using an escalation clause and now you want the seller to reduce the price because the appraiser cannot find any comps. Would you offer the seller more if it came in above?
How did you and all those other buyers chose the price offered? Surely you considered recent sales, other homes you have seen, before you made this wonderful fair market value offer to the seller. On what grounds therefore are you asking the seller to reduce the price you agreed to pay?
If the bank won't give you a mortgage for the whole amount, it may require you to put more money down in this market to cover the difference. The financial condition of the buyer has never been more important. Why do you expect the seller to cover the difference?
Even when listing a home using recent sales can cause a home to receive multiple offers significantly over the asking price. It is therefore becoming more important for a buyer to waive the appraisal, more so than inspections, or at least be willing to not be dependent on the appraisal coming in at value to go to settlement.
If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you, contact us or connect
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