What if we sold your home for $40,000 above list price. How can that even be possible? But right now, believe it or not, it’s happening. We just recently sold a house on North Prospect street for 44,000 above list price. A house on South 8th street for 25,000 above list price. And, a house on Crystal Springs road for 20,000 above list price. Hi everyone. I’m Anne Curry, owner associate broker of Anne Curry Homes, Better Properties. So, if you saw my previous video, you found out one strategy to make sure you actually get to keep the amount of money you go into contract for. There are a few more things to consider when selling your house for significantly more than it’s possibly worth, or considerably more than the neighbors recently sold for. The first was to make sure the buyer would be willing to remove the appraisal contingency altogether. However, many buyers aren’t willing to do that.
So another alternative, if they aren’t willing to remove the appraisal contingency altogether, is to see if any of the buyers are willing to give you a specific amount that they’re willing to pay above the appraised value; obviously not to exceed that agreed upon purchase price. Well, how can this be helpful and why would it even matter? You see, if someone really wants your home, they may be willing to pay any amount for it. But, as we learned before, the bank is only going to loan what it appraises for. So, if the buyer removes the appraisal contingency altogether, it’s like writing a blank check, and they can’t be certain as to what the home will appraise for; so they have no idea what the difference actually is going to be, and how big of a check they might have to write. So, buyers are afraid to do that.
So another option, is to have them agree on a specific amount, they agree to pay over the appraised value, if the home doesn’t appraise. Here’s an example, let’s just say you agree on a sales price of 600,000, and as a seller, based on the advice of your agent, you know the home, most likely, will not appraise at that amount. The first option would be to counter out the appraisal contingency. And, the second option would be to ask the buyer how much they’d be willing to pay over the appraised value. So let’s just say, the buyer says, they’re willing to pay 15,000 over the appraised value. If the home only appraised at 580,000, that means they’d be willing to pay 595,000. 15,000 over what the home appraised for, but would mean the seller would get 5,000 less, than what was originally agreed upon in the initial contract.
Again, there’s a lot to consider when selling your home, and not always just as cut and dry, as it may seem. So, what’s the answer on how you protect yourself? Call a professional. Call us here, at Anne Curry Homes. We’ve been helping and protecting thousands, yes thousands, of Tacoma residents just like you; and we’d like to help you too. So, give us a call on the number on your screen and click below for more informational videos. And as always, make it a great home buying and selling day.