Offers way over list price

[Ben Crego]

A buddy listed his house that he has lived in since May 2018 and received 11 offers within two days. One was 13% over list and then he had multiple at 8.7% over list (I.e. 20-30,000 on $230,000 list). The comps are around his list price.

He is concerned if he takes the highest offer that it won’t appraise and then he’s going to be stuck either renegotiating or relisting. Someone else was telling me that just happened to them.

Are buyers offering high numbers expecting the appraisals to come in low so they can pull the price back down?

[Nathan Gesner]

Not likely. They are probably offering a higher price because the market is ridiculously out of control and they've lost out on previous homes by not offering enough.

Don't worry about it. If the appraisal comes in lower, the buyer can pay the difference out of pocket, back out, or you negotiate a lower price. Your friend should only back down to where the other offers were. If the Buyer walks, you put it back on the market and try again.