When Someone Wants to Pay More For Your Home Than the Appraised Value…

Take it!

I should end the blog there, but in fairness, I’ll fill you in on some news you can use.

Sellers right now are in a predicament.  If they really want to sell, they have to accept the current financial and economic situation.  Just like there is no magic wand out there for the economy of the United States of America, there is no magic wand for the price that your home will appraise for.

Webster’s dictionary defines “appraiser” as someone who   “evaluates, especially in an official capacity.”  An appraiser is the authority on what your home is worth.

What happens if your home appraises for less than you’ve agreed on with a current buyer?

There are two possible scenarios:

1.  Typically negotiations start again.  No bank, especially now, will ever allow you to borrow more for a home than it is worth.  So, you can order another appraiser (I haven’t had a case where that has helped much, you just won’t get another appraiser to risk his license and his livelyhood to fudge the appraised value.)

This lands you at the crossroads of: you have to sell the house for what it appraised.  You can cancel the escrow with your current buyer, but that appraisal ends up being in your disclosure package to your next buyer.

You know what they say in real estate school?  Disclose, disclose, disclose!

2.  Option number two is interesting.  It rarely happens and it is a godsend when it does:  the buyer wants the house so bad, he’s willing to offer more money out of his own pocket and bring it into escrow!

I actually have never had that happen.  Typically when you’re selling San Diego real estate you have to beg and plead the buyer, who has jittery knees and sweaty palms, to purchase the home.  The typical buyer in today’s market has to be pampered, listened to, consoled, and understood.

And even then he may run fleeing, afraid of the commitment of homeownership.

Today I find myself with scenario number two and a seller who is dragging her feet.  For her to get the 100K more that she wants on her home, it will take years!

There’s no magic wand for the economy, your home’s worth, or the current housing market.  Just motivated buyers and sellers – that’ s a match made in heaven:)