If you’re a seller in our market, you have to be prepared to sell your home more than once.
In a market like we’ve been in, where home values have been rising quickly, we’re seeing a lot of challenges in the appraisal world. Even if you come to an agreement with the buyer on the sale price, you still have to sell that price to the appraiser, who has to find reasonable comparable properties to suggest they can verify your home’s value so the bank will give the loan to the buyer.
A 1% to 2% difference in your home’s value may not sound like a lot, but it can completely derail a mortgage. This means buyers have to come to the table with more money to make the loan-to-value ratio work. If they don’t have that extra sum, then you have to come down on the list price. If neither party can come together on a price, the deal falls through.
With prices rising and appraisers doing everything they can to justify home values to the banks, we’re seeing a lot of that happen. In the end, your home’s value has to match what the appraiser agrees to.
If you have any questions about how to sell your home twice or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d be happy to help.