It’s an insanely hot super savvy seller’s market in Creek County and Tulsa County. Many of you know and many people actually don’t know that the market is super competitive right now if you’re selling your house. We’re seeing sellers getting multiple offers on their homes. It can be super confusing and exciting all at the same time. I totally get it. Just this week we were in a multiple offer situation. Hi everyone, I’m Sabrina Shaw with Homes by Sabrina brokered by exp Realty. So how do you know what offer to choose? Is the highest offer always the best? Well, if you’re wondering or possibly considering selling your home then listen in. Many sellers think that the highest offer is always the one that they should take. Well, the highest offer doesn’t always mean that it’s the best offer. And let me explain why. If there is a loan involved and a buyer offers you an insanely high price for your home we need to make sure that the home will actually appraise at the contracted price. So, why does that matter? Well, because the bank will only loan based upon the appraised value.
Let’s break that down into layman’s terms. If the buyer offers $650,000 for the home and the appraised value comes in at $640,000 the bank will only loan on $640,000. So there’s a difference in the price of $10,000. That means that the buyer would have to come in with a difference. To understand, the buyer still has to come in with their closing costs, down payment, and possibly have enough money in the bank for reserves. In addition to coming up with the additional $10,000 to cover the difference in the appraised value. So how does this pertain to a seller and what do they need to do to protect themselves?
One of the things that we do here at Homes by Sabrina is to find the sweet spot. One of the best options for a seller is to counter a no appraisal contingency. Meaning that the buyer will pay the difference between the appraised value and the purchase price. When doing this, make sure that number one the buyer has the ability to pay the difference. Two, they’ll still have enough money to qualify for all the fees associated with the purchase. And three, that they actually really understand what that means.
There are a lot more issues to be concerned with when this happens and I could be here all day explaining. This process can be overwhelming but you really shouldn’t have to worry about all this stuff. Trust me there’s a lot more to find out when you’re selling. How do you make sure that you end up with the amount of money when selling your home that you and the buyer mutually agreed upon? Call us here at Homes by Sabrina and we will do the negotiating for you and make sure it’s clean and easy. And stay tuned for more tips on making sure that you get the money that you think you are when selling. I’m Sabrina Shaw transforming lives one home at a time. And remember everyone should love where they live.