recent sale in October

Real Estate

My recent sale in Duluth, GA was a hectic one. Not only did my Seller get 4 offers but one offer was exceptional.They offered $7000 over appraised value! CASH at closing. Of course it appraised at my suggested list price, which was already highest for neighborhood. My Seller was astounded. However, the Buyers started balking about it after the appraisal came in at purchase price. Their agent had suggested they pay higher as there was nothing available around and hoping it would appraise. This tactic can be useful in getting on first base with a home your Buyer really wants, however it could backfire as well as: 

1. Buyer could withdraw and lose only their earnest money ($1000 in this case)

2. Lender may not allow additional funds to be paid and shown on the Purchase and Sale Agreement.

3. Buyer's ability to get a loan for full amount could offer an "out"

4. Buyer expectations of what should be repaired or replaced is much higher.

5.Seller expectations of your pricing strategy is now flawed.

Be careful when your property gets multiple offers. The main reason is that so many people are chasing properties under $250K that they will do strange things. A Realtor with years of experience can make sure your contract stays realistic.