The real estate market is insane right now. It feel like Black Friday the way it used to be 5 years ago when people would line up for days to see houses.
…except this time, they’re willing to pay absurd prices to get a house…
…AND they’re willing to waive the appraisal contingency.
This is a recipe for disaster.
Let’s say a house is listed for $400,000.
You offer 10% over list price – $440,000.
You also waive the appraisal contingency. This means that if the house doesn’t appraise for the amount you offered ($440k), you’ll pay the difference.
This could be a couple thousand dollars…
…or it could be tens of thousands of dollars.
And if you don’t pay up, you will likely lose your earnest money deposit.
So before you think about waiving the appraisal or offering over asking price, check your bank account.