Mortgage Blog

A few weeks ago, one of my borrowers got the offer
accepted by adding the condition on the offer:
"If the appraisal value is lower than the purchase
price, 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 borrower
how much they should offer. There were a few examples
that the buyer beat the cash-offer with lower price.
(Cash-offer 320k. Loan offer 335k. The appraisal
value is 310k. The buyer got it 310k, with a loan).

Talked to a listing agent over the weekend. He shared
with me a little bit about how he picked up the offer.
For example, there is a property listed 185k. Highest
cash-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, if
lower 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 more
closing cost, etc.

Last week, my friend got an offer accepted with 202k
(listing 198k, back to market offer). Her offer was
accepted maybe because the listing agent already
know the value of the property.