So lets say I'm your hero and I bring you an offer for a bazillion dollars for your listing. Your listing isn't worth a bazillion dollars but you, as a seller, think it is. So here's the kicker.
The appraisal is the seller's moment of truth. The seller may feel that their property is worth above market value but once the appraiser (for the buyer's lender) sets the appraisal price, you may have a problem if it appraises below the sale price. Reason being, the lender will require the buyer come up with the difference between the sale price and the appraised price. This is why, in this situation, most buyers will either want to pay the appraised price or back out of the deal. Is there any buyer out there that wants to pay over market value for the price of any house? I doubt it.
The appraisal has now set the market value on your home. So now what? The appraisal report has become a disclosure item and must be shown to the next buyer (if you choose to seek one). So you're stuck. You could get the buyer to agree to having another appraisal done but if the new one is lower you're really in trouble. Big risk. If it's higher the buyer is now tainted and he won't want to pay more. You could ask for the first appraiser to "re-appraise" but if that comes in higher the buyer is still tainted by the first appraisal price.
Best bet is to cut your losses and allow the buyer to purchase at the appraised price unless they agree to come up with extra cash for the difference......or stay there and wait out the market for a few years or make it a rental property.
So when you get an offer and it's over market value don't hold your breath if the buyer is getting a loan. Reality is, the buyer's loan is based on the property appraising and if it doesn't then you'll have to go to plan "B." So sellers, unfortunate as it is, be aware your moment of truth is coming when the appraiser arrives.
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