August 23rd, 2012 1:44 PM by Eric Fang
A few weeks ago, one of my borrowers got the offeraccepted by adding the condition on the offer:"If the appraisal value is lower than the purchaseprice, and borrower would like like to pay $10k above the appraisal value as the final offer price".
So some readers asked to share more about those kind of info.
It's agent's wisdom to decide with the borrowerhow much they should offer. There were a few examplesthat the buyer beat the cash-offer with lower price.(Cash-offer 320k. Loan offer 335k. The appraisalvalue is 310k. The buyer got it 310k, with a loan).
Talked to a listing agent over the weekend. He sharedwith me a little bit about how he picked up the offer.For example, there is a property listed 185k. Highestcash-offer 200k. Highest loan offers 210k but asking 2%closing cost. According to him, they will pick up the final offer depends on a lot of factors.
He said, if he knows the appraisal value is low, iflower than 200k, then he might choose 200k cash-offer.If the appraisal value higher, he may choose the loan offer and will ask borrower pick up moreclosing cost, etc.
Last week, my friend got an offer accepted with 202k(listing 198k, back to market offer). Her offer wasaccepted maybe because the listing agent alreadyknow the value of the property.