Are We Back to A Housing Market Agreeing To Any Terms to Win The Bid
Is the low inventory of homes available in Contra Costa County encouraging buyers to agree to just about anything to make sure they get the house?
Are we back to the days when values didn’t matter? Is waiving appraisals the prudent path to follow? When the sellers request that buyers waive the appraisal, isn’t that a red flag that they are doubtful the home will appraise. I guess if the buyer has the cash to pay the difference then that is their choice. But what about the buyers that say yes to this request, hoping and praying the home will appraise only to be shocked and disappointed when it doesn’t. It is not uncommon to see these properties come back on the market when appraisals are low.
In addition to price other items such as writing in removal of contingencies in unrealistic time frames. Inspections, appraisals and loan approvals fall under this category. What happens if the inspector can’t get to the home in 5 days? I’ve overheard agents discuss this and their answer is “we can always request extensions”. That is true, but that is also misleading to the Seller who may have selected an offer based on a quick close only to find the buyer requesting extra time and time is lost money to the Seller. This is also true of the appraisal, it can take appraisers 5 to 7 days sometimes to do the appraisal, which impacts the loan approval and again in some instances moves out the closing date.
The theory of many is “a bird in the hand” ……so the seller surely will give the extensions rather than putting the house back on the market and starting over. And in many cases this is true, but it doesn’t make for an easy escrow period.
The home buying process takes time so try not to be unrealistic — this applies to both the buyer and seller.
Filed under: General RE Tips
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