Asking Price vs Appraisal

[Alfredo O.]

ok, I have to ask a newbie question.  How are others selling their homes above the asking price if the appraisal does not come near the offer price?

Example:

Listed property for 217k

Multiple offers came in at a high of 225k

Appraisal on property may not come in as high as 225k but we feel the house is worth every penny.

I know most banks will not finance above appraisal, so how do you get past this hurdle?

[John Kesner]

@Alfredo O.

You have 2 options when purchasing a property that will not appraise for the agreed purchase price.

1. Pay cash, no appraisal required

2. Bank loans a % of appraised value (just like a normal purchase) and you add the extra cash. its like a higher down payment but its paid to the seller not the bank.