‘Borderline Desperate’ Buyers Are Winning Bidding
Wars but Risking Deals Over Low Appraisals
Top paragraphs and pic excerpted from a recent post on Realtor.com.
"Desperate to win bidding wars in low-supply, high-demand markets, buyers often
offer well over asking price, only to see the deal stall because the appraisal falls short
of mortgage requirements.
This leaves them with a stark choice—either pay out of pocket to bridge the
financing gap or walk away from their dream home."
Well, let me start off by responding: WRONG!
Working in Northern, NJ, where its still very much a Sellers Market--meaning sellers are
still receiving multiple offers for their properties --has been quite a challenge. Yet, there
are many innovative mortgage lenders that have come up with solutions that not only
help a buyer make an offer over asking without necessarily having to deal with the risk
of a lower appraisal, but have some intrinsically additional benefits, which I will explain
shortly.
Running a team with, with my partner MaryCeu Nunes, with over 850 closed
transactions under out respective belts, totaling over $ One-Half Billion in lifetime
team sales, allows us to speak to this issue, as we also represent buyers in addition to
working for sellers. And frankly, this article is geared to not only helping to benefit buyers,
based upon our experience, to become more successful buying a home; but it also helps
our sellers get the most money for the sale of their property. So, this is a WIN-WIN for
everyone.
While each of the key lenders (they are all prolific and work for large scale lenders) may
have different methods that enable them to offer appraisal waivers, they have one thing
in common in that they refer to either their own proprietary valuation systems, or to
independent or national valuation systems (sorry to say, not Zillow). How does it work,
well after you make an application with one of these lenders, they can run the property
through the valuation process and then they can advise "up to what $ amount," you can
safely make an offer that they will validate with a certificate or additional language in
their pre-approval. This has helped our team win several multiple bid scenarios this
year and that makes for Very Happy Buyers.
At the same time, there is another hidden benefit to buyers, which I will explain. Firstly,
buyers will almost always ask their buyer agents for bidding advice, yet there may often
be a slight hesitancy to doubt some of this advice. When we represent buyers, I will
always tell my buyers that my job is like that of the professional quarterback in the
pocket, doing everything I can to best understand the lay of the land, before providing
any advice. Still, some buyers may be skeptical.
So, the BONUS of using a mortgage lender with an Appraisal Waiver Program, is the
same buyers can now get advice from a third party as to how much a property may be
worth, thereby making a buyer bid with more confidence as a higher threshold means
a buyer is still getting some built-in equity with their over asking purchase. So this is,
without a doubt, a WIN-WIN for buyers in markets that are still Seller favored.
Yet, we also list properties, so I also love that we can get some of the insight into how
much a property might appraise for, so we can provide any buyer--as long as they ask--
with the same comfort of how high they can safely bid, which translates into an additional
benefit to the Sellers we represent.
In a recent instance, we listed an amazing architectural masterpiece--www.500Berkeley.com--
for $1,150,000 and one of our preferred Appraisal Waiver Lenders advised that he could
cover an offer up to $1,226,000; so when someone challenges me on the asking price, I am
able to calmly state, well one of our lenders has confirmed that a buyer can safely go even
higher and provide the amount in question.
If you would like to learn more about any of the above, please feel free to reach out to
Mark, via text, at 917-797-5059.
Mark Slade Keller Williams 917.797.5059 Good Homes Selling a Maplewood/South Orange/West Orange area home involves many steps and having an experienced Maplewood New Jersey Real Estate Agent and Realtor®, specializing in the Bedroom Communities of New York City in Essex/Union County— Millburn, Short Hills, Montclair, West Orange, South Orange, Livingston, Maplewood, Springfield, Summit, Madison, Chatham, Scotch Plains, Fanwood, Cranford and Westfield--by your side will make the transaction run a lot smoother. I would love to be your Maplewood/South Orange New Jersey Area Real Estate Professional! I assist both buyers and sellers in the Bedroom Communities of New York City, mostly served by NJ Transit’s Mid-Town Direct Train Lines, offering commutes of 45minute or less to NY Penn Station, with either the purchase and or sale of residential real estate.
As an Accredited Buyer’s Agent (ABR), I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home. My GO-TO team can provide you the best in Real Estate advice with regard to attorney choices, Home Inspectors and Mortgage Loan Officers
I am also a Luxury specialist (CLHMS), I have received special training to guide and educate you through the entire home buying and selling process. Not only does this extra training help me better understand this upper echelon in real estate, its benefit include a special luxury website: www.njluxhomes.com and a corresponding worldwide luxury network that helps to put luxury buyers and sellers together.
As your Maplewood/South Orange/ West Orange New Jersey listing agent I am well versed on as your local expert in all things in the West Orange, Maplewood and South Orange area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your Mid-Town Direct home to be competitive in today’s market with training to provide my clients with an in-depth Advanced Comparative Market analysis, and advice on staging. As my office’s technology officer as well as both a Zillow Platinum Premier and Trulia Premier agent, I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your New Jersey Real Estate Agent and Realtor ® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your New Jersey Essex/Union County area Realtor® (with a little bit of Morris County thrown in for good measure) is one of my truest passions, and “Helping You Find Your Dream Home” is my number one priority. Don’t forget These Helpful Sites:
www.bedroomcommunitiesofnyc.com
www.goodhomesforgoodpeople.com
Let's work together to find you find your Dream Home!
