Low inventory in the Boston market has caused a number of multiple offer situations on listed homes. This is good news for sellers, but can pose problems, too.
Great news: we’re officially in the fall real estate market. Because we’ve had low inventory this year, it’s not uncommon to have multiple offers on a property with some offers substantially higher than the list price. Though this may seem like a great problem for the seller to have, it’s important to be careful when it comes time for the appraisal.
A good listing agent will analyze each offer with their seller and educate them about every problem that may occur during the transaction. An example of a common problem with high offers is when the home doesn't appraise to its agreed-upon price.
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A good agent will bring the home’s features to the appraiser’s attention.
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In this situation, a seller will want to go back to the highest offer and re-negotiate with the highest bidder so that they’ll pay the difference between the appraisal and the purchase price in cash. This will essentially remove the appraisal contingency and prevent any future delays in re-negotiating the offer price when the appraisal does come in.
The seller will want to make sure that they have their listing agent meet with the appraiser at the property at the time of the appraisal. Listing agents have a pulse on the local market and will share the most recent comparable home sales, buyer feedback, the number of offers on the home, special features of the property, and any recent upgrades with the appraiser in order to justify the sale price.
If you have any questions about low appraisals or the home buying or selling process in general, don’t hesitate to give me a call or send me an email. I hope to hear from you soon!
