Multiple offers and low appraisals, this is the current market we are sitting in in the March timeframe of 2022.

Hi, this is John Herman of PropertyUp. I am the owner and realtor at PropertyUp. I’ve sold about 1000 homes in the northwest suburbs of Chicago and I just wanted to make it real quick video about what’s going on with appraisals and multiple offers.

So, a recent listing that I had in Schaumburg to give you an example. I listed the probably at 4:30 on Friday and by Sunday at 6 p.m. we had 48 showings over the weekend and I told each one of the agents we will look at your offers once all the offers come in.

So, 12 offers came in and we accepted an offer that was thirty thousand dollars of the list price.

So, this is something to think about when you do receive an offer that’s way over the list price because it’s a crazy market there’s no inventory there are more buyers.

lenders can actually help us out in the situation. So instead of hindering us today because what will happen is an appraisal may come in and the appraisal in will be low and will not be at the agreed-upon value because going over thirty thousand dollars over a list price that’s going to be quite challenging to actually make it appraised.

What the lenders can do is they can restructure the loan. When they restructured a loan, they can take that conventional loan where the buyers coming in at say 20% down as their down payment for the loan. The lender can restructure it to a lower down payment and use that money that was going to be used as a down payment as the appraisal gap they call and pay the difference.

So, lenders, you can help us out in these situations by doing your restructuring. I hope you found this helpful.

This is John Herman of PropertyUp, just a short video of what’s happening in the market and how we can solve issues that may come up during these transactions.

All right you have a good one will talk to you later Bye.