Mar
08
Buyer's Tip

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.

Here’s why:

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.

*womp womp*

So before you think about waiving the appraisal or offering over asking price, check your bank account.