What? You sold your home for 10,000 above list price? How can that even be possible? Well right now, believe it or not, it’s happening. Just recently, we had a home in Tulsa on Hudson go above list price, an Owasso home go above list price and a home in Kiefer go above list price. So if you read my previous blog, you found out one strategy to make sure that you actually get to keep the amount of money that 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 your neighbors have recently sold for. And the first was to see if 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 specified amount that they’re willing to pay above the appraised value, obviously not to exceed the agreed-upon purchase price. Well, how can this be helpful or why would it 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. If the buyer removes the appraisal contingency altogether, it’s sort of like writing a blank check. They can’t be certain as to what the home will appraise for, so they have no idea what the difference is and how to give a check they may have to write. So many buyers are afraid to do this.
So another option is to have them agree upon a specified amount that they agree to pay over the appraised value if the home does not appraise. So here’s an example, let’s just say that you agree on a sales price of $600,000 and as a seller, based upon the advice of your agent, know that the home, most likely, will not appraise at that amount, the first option would be to counter out the appraisal contingency. The second option would be to ask the buyer how much they would 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 gets appraised at $580,000, that means that they would be willing to pay $595,000, but that 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 it’s not always just as cut and dry as it may seem. So what’s the answer, how do you protect yourself? Call a professional. Call us here at Homes By Sabrina, we would love to help you get the most money in your pocket. At Homes by Sabrina, we are transforming lives one home at a time and everyone should love where they live.