How does a listing agent who just sold their client’s home in multiple offers ensure that it appraises?
A. Provide the Appraiser with helpful Comp’s (Comparable Sold Properties).
B. Email the Appraiser the runner-up offers (with identifying info expunged).
C. Raise the listing price on MLS.
D. All of the above.
Correct answer: D.
Of course, whether or not a given home appraises isn’t ultimately up to the listing agent.
So, a fallback strategy can be to pre-negotiate with the Buyer what happens if it doesn’t.
Not all Buyers will agree to this, but from the Seller’s perspective, the preferred approach is inserting a clause in the Purchase Agreement stating that if the home doesn’t appraise, the Buyer will put in additional cash to make up for any shortfall (leaving the sales price unchanged). See, “In Buyer’s Sole Discretion.”
If the first Buyer doesn’t agree, it’s just possible that one of the “backup” Buyers will.
