Strategies for Winning: Low Appraisal Guarantee

 Strategies for Winning: Low Appraisal Guarantee

Seattle City Lifestyle Photo

If you’re considering buying a home in Washington or most places, with financing, there’s almost always going to be an appraisal required. The entity holding the mortgage is taking the most risk by lending you the funds to purchase the property. If you were in their shoes, you’d want to know as much about the property as possible, to ensure it’s a good risk/reward. 

 

When a homeowner has their listing agent place the home on the market for sale, in general, the agent has done their homework and prices the property within a certain value range that’s appropriate for it’s size, age, condition, location and many other factors. If the home is overpriced, it’s likely just going to sit and sit until the listing expires, or the homeowner realizes that the market is not going to overpay for the home. It’s a tough scenario for agents and buyers. 

 

Sometimes the real estate market is so hot, that buyers may be willing to overpay, if inventory is low, or it’s such a unique property that buyers are willing to take that risk. Here in Tacoma and Gig Harbor we have view homes that garner a lot of attention and offers over asking. 

 

The other scenario is the most common. The property is very marketable, and there is so much interest, that multiple buyers bring offers hoping to compete and be the highest and best offer. 

 

One way to set your offer apart from other offers, is to present an addendum offering an increased downpayment to make up any shortfall from a low appraisal. Listing agents know that buyers are willing to offer higher and higher prices for their listing. What many buyers aren’t willing to do, is guarantee they’ll pay the difference if the appraisal comes in short. Just because a buyer puts a high figure on their offer, does not mean they’ll end up paying that number. 

 

No one but the appraiser can control the appraisal value of the home and its both agents responsibility to set their clients expectations appropriately. The sellers shouldn’t expect a “guaranteed” price unless the buyer has offered up an appraisal shortfall guarantee. And buyers shouldn’t assume the property will appraise where they’ve offered - knowing they could be asked to bring more money to closing. 

 

Why would a buyer “overpay” for a home in Tacoma or elsewhere? Either because they plan to be there long enough to make up the cost. Or they simply want to finally land a home that fits their needs. In the world of appraisals, it can be stressful waiting for the figure to come back from your mortgage lender. 

 

There are many strategies to set your offer apart from other buyers, and offering an appraisal gap increased downpayment is one way to strengthen your offer significantly. 

 

If you have any questions about real estate, offer strategies or are thinking about entering the market, please text or call (206) 643-8845 or register with me at https://erikmolzen.bhhsnw.com/ 

#realestate #buyingtacoma #bhhsnw #appraisals #washingtonrealestate #findyourselfhere #urbanelevatednw #erikmolzenrealtor #buyerstrategies #homesforsale


Location: Tacoma, WA, USA

Comments

Post a Comment

Popular posts from this blog

Your Washington State 2025 Market Forecast

Image
As we move through 2025, Washington state's real estate market shows a blend of stability and gradual growth, influenced by various economic and demographic factors. From a top Seattle agent viewpoint, here’s an in-depth look at the current trends and forecasts shaping the market. Moderate Home Price Appreciation Statewide, home prices are anticipated to experience modest increases. Analysts predict that median home prices could rise by approximately 3% to 4% annually over the next two years. This steady appreciation suggests that Washington will remain an attractive market for both homeowners and investors. In Seattle, the median home price is around $850,000 as of December 2024, with expectations of continued growth into 2025. Limited inventory and sustained demand, particularly in sought-after neighborhoods, are key drivers of this trend. Inventory Levels and Market Dynamics The state's housing inventory remains tight, contributing to a competitive market environme...
Read more

Gig Harbor, Washington: A Blend of History, Growth, and Livability - Why Are People Moving?

Image
Nestled along the scenic Puget Sound in Washington State, Gig Harbor combines its rich maritime history, small-town charm, and modern amenities, making it an exceptional place to call home. Often referred to as the "Gateway to the Olympic Peninsula," Gig Harbor has transformed over the years into one of the Pacific Northwest's most desirable communities for both families and retirees.   A Glimpse into Gig Harbor’s History   Gig Harbor's story began in 1841 when Captain Charles Wilkes of the U.S. Exploring Expedition sought shelter in the harbor during a storm. Using a small boat called a gig, the area earned its name and began its legacy as a safe haven. In the late 19th and early 20th centuries, the town flourished as a fishing and boatbuilding community, drawing Scandinavian immigrants who left a lasting cultural imprint. Today, the maritime traditions of Gig Harbor are celebrated at landmarks like the Harbor History Museum, offering residents and visitors alik...
Read more

5 Things You Have To Consider Before Buying a Home

Image
  5 Things You Have To Consider Before Buying a Home Buying a home is one of the most significant investments you'll make in your lifetime. The process can be exciting yet overwhelming, especially if you're a first-time homebuyer. While it’s easy to get caught up in the aesthetics of a potential new home, it’s crucial to consider various factors that could affect your investment long-term. Here are five key things to think about before signing on the dotted line. Deferred Maintenance One of the first things to assess when considering a home purchase is the state of its maintenance. Deferred maintenance refers to necessary repairs and upkeep that have been postponed, often leading to larger problems down the line. When touring a home, it’s essential to keep an eye out for signs of neglect, such as peeling paint, outdated appliances, or leaky roofs, which are very common here in Tacoma and the Pacific Northwest. These seemingly minor issues could be indicative of more sign...
Read more