I just had a discussion with an agent in my office about one of his listings that (like so many others in today’s market) is enjoying MULTILPE offers…Two offers are submitted from FHA buyers and one is a cash buyer. Naturally you would think the cash buyer trumps all…and to a large degree that’s true…however the emphansis on THIS Blog post is…the buyer WAS willing to pay OVER appraised value ($5,000) just to get the house! I will be blogging tomorrow on FHA vs. Conventional appraisals but for today…again…Offering to pay OVER appraised value just to get the house!
The home in question was listed at $199,000 and sold for $192,000 and it appraised for $180,000 but the cash buyer too is going to pay $7,000 OVER! That neighborhood will enjoy a comp of $7,000 over bank value and that will help everyone!
When your Realtor suggests full price offers…they are not trying to “puff” their earnings…They are trying to get you the house and today, full price, will only get you noticed.