Multiple Offers and Appraisal Worries (Still)
Alice in Wonderland would’ve loved today’s bizzaro housing market.
That’s because — in the midst of an unprecedented Buyer feeding frenzy — “up” is often “down,” “in” is “out,” and “down” is “up.”
Exhibit A: the Minnetonka home seller who reportedly countered a Buyer $20k below the price offered by the Buyer.
The background: almost immediately after listing their home at $400k recently, the Seller received multiple offers above their asking price.
The presumptive winner?
An (over)eager Buyer who offered $450k, leaving their competition (never mind the asking price) in the dust.
Done deal, right?
Not so fast.
The Seller — no doubt counseled by their listing agent — worried that their home wouldn’t appraise at $450k.
Instead of taking the deal at that price, they countered the Buyer at $430k — as in, $20k below the price the Buyer offered.
In addition to the lower price, the Seller’s Counteroffer stipulated that the Buyer: a) waive any recourse if the home appraised below $430k; and b) agree to put in more cash to cover any appraisal (and therefore mortgage) shortfall.
“Done” and “done.”
Just don’t expect to see that scenario repeated when (if??) the housing market ever becomes more balanced . . .
See also, “Buyer: “Too Low!” Seller: “Too High!” (Huh?!?).”