Appraisal vs Offer challenges

[Laura Kastner]

Hi,

As most of is are pretty aware;

1. Im not seeing anying go for under asking price or even asking price (unless the place has burned to the ground & the ask is just for land.

2. How does one determine which STRs are the top performers? 

3. To win a bid, usually you have to waive the appraisal contingency. Are there creative ways to do that with sinking in/ losing EMD and ending up paying an extra 10's of thousands to bridge the gap between appraisal & offer? (I'm talking having to shell out another extra 30k-100k in addition to down payment, closing costs, etc???

For example:

The initial ask is 450K, the nearby comps are around 400k, and the seller wants 500k. So you’d be stuck paying 100k + close.

Can you waive appraisal & say buyer will make up to 20k to close the gap or is that still a contingency?

Any creative ideas are appreciated :)

Thank you in advance!!!

[Taylor Dasch]

Yes you can do an appraisal waiver up to 20k or however much you want, you will pay an extra 20k at closing but it sounds like you know your numbers well enough to be doing this.  So if the REA is smart and knows the property is worth around 400k and you offer 500k with a 20k appraisal waiver to them your offering 420k IMO (idk how accurate this is.) Also I do think that an appraiser would take into account that there are multiple offers for 500k on the property and maybe increase the value. Also I dont know why this isnt more common - The biggest push back I get when someone wants to sell is that they dont know where they will go and wont be able to buy in this market, the sellers are thinking this as well for the most part - I think that giving a free 60-90 day leaseback will help your offers tremendously without having to go as far above the asking price as the competition who wants to move in in 30 days.