Unwise to offer no appraisal contingency? Going to offer above asking price on a house with multiple bids. Realtor suggested potentially foregoing appraisal contingency to show we’re committed to closing. We have a lot of cash but wouldn’t it be a red flag if the house doesn’t appraise for the full value? How risky is it if we’re only paying 10-15k above asking? Any other considerations? Thanks!

like
Posting as :
works at
You are currently posting as works at

It depends on the area. I know that in DC, forgoing the appraisal contingency is quite normal - maybe even expected by sellers - but less common in, say, Chicago.

D1 highlighted the main question here: is your RE agent good? If they are able to clearly explain to you the downside risk of forgoing that contingency, the reason they assess the probability of seeing that downside as low, and have a number of experiences with this strategy that they can walk you through, I'd still do my own analysis but would be more inclined to trust their judgment.

D1 also shared a really smart more when going above asking: use an escalation clause. It helps you avoid paying egregiously over asking if the next best offer was garbage. The savvy seller's agent will delay and stoke bidding wars to drive your number up, if they can, but if you're already in a multiple offer situation, that ship may have sailed. Consider using the top-of-budget figure as your cap for an escalation clause tho, so that your number looks flashy and you've really done the most that you care to in order to win the property. Don't get crazy though; this is just the beginning of your expenses.

likehelpful

We offered without the appraisal contingency based on all the comparables in the area / neighborhood that had just sold. We offered the asking price with up to $15k escalation clause (above asking when needed to match another offer, in $2k increments). We also took away our option to negotiate price based on inspection (wed take it or leave it), and promised close in 30 days.

We were nervous about all of it but it worked out for us. We trusted our realtor who knew the area very well & more than just the list of comparables.

helpful

I think a house is worth what a buyer is willing to pay. If you’re happy getting the house at above asking, then the appraisal shouldn’t matter as long as you and your realtor have done your homework and are comfortable with the price paid.

Additionally when a house next door goes on the market they will use the price you paid as a comparison, not what your house appraised for. Same when you sell, buyers will see what you bought the house for not what it appraised for.

I lost 3 property deals because I didn’t have enough cash. Which costed me, in my third deal I went with the seller agent as my agent just to incentivize her more in a multi bid scenario. But still didn’t get it, the market is super hot. Go ahead with what the agent recommended.

Related Posts

Does Boston Consulting Group have the following?
- HSA
- After tax contributions to 401k w/ in plan Roth conversion

I’m joining in a few weeks and doing some planning on how to adjust my existing accounts/strategy.

Thanks!

like

How do filmmakers find investors?

like

My long term stock portfolio suggestion please?

Post Photo
like

Have 20k, what’s a good small business to start with this fund? Serious question here

like

25 Years old in Toronto - stressed about finances 24/7 and really impacting mental health. How do y’all maintain peace with savings goals / aspirations.

like

Still using Ally Bank savings account, but the APY had dropped to .60%. Time to move. Any recs on personal savings account? This is my emergency “savings”

like

Making this bowl to share thoughts and experiences about angel investing!

like

Any investors have insights into what you look for investing in a social media platform? Is this something you do or do not have interest in/why?

Background is development of a social media platform looking for a $100k investment to get off the ground in a great market with tons of opportunity and proof of concept.

like

Finally bought my first house, pending inspection! My Spouse is starting to worry and is anxious that we overpaid due to the crazy market right now. Any tips to cope with this feeling?

like

Hi guys,

I got my full and final settlement today but I can see no tax deduction. Does anyone know the reason. 4k tax used to be deducted every month till now. I also got gratuity and leave encashment along

like

Debt payoff update: house paid off, personal loans paid off, credit card down from 22K to 5K. Car loan is 21K. Looking to be completely debt free in 6 weeks, very excited!

likeupliftingsmart

Are my crypto profits taxed?

Well yes. Crypto is taxed like stocks & other types of property. When you sell for a profit, you are required to pay tax on the gains. It’s called capital gains tax.

like

High risk, low reward investment ideas?

funnylikesmart

27, paid off car, student loans left is $18.5k, investments at $22.3k, trying to go to grad school PT by next summer. employer willing to pay $5.5k/yearly, would take me 2.3ish years to complete, projected price would be $23k after tuition reimbursement. what’s the best way to pay through school, i feel like it doesn’t make sense to put money into a 529 if i plan to withdraw so soon? thoughts were max out my 403B, show an AGI of 70K and get low cost student loans out? does this make sense to do?

like

Currently have excessive savings. Is now a good time to invest in general S&P funds?

like

Cross-posting: Im trying to flip a new build - long story, but have had certain circumstances come up and can't keep the home - but I'm now competing with the builder because they have homes still being built in the neighborhood (there is nothing against me selling it). They have started offering added incentives and low balling due to market conditions. What do I have and what can I do to sell mine? Or should I give up and just rent it out and wait? Any advice appreciated.

Going with a solo 401k so I can borrow 50k if I need it for buisness purposes in the future with no questions asked and fast what companies should I look at?

likesmart

Anyone willing to share thoughts on National tax- unclaimed property at EY?

Received an offer from EY but didn’t find enough information to get to know about it.

like

Implications of a PE firm selling and a company bringing on a new investment partner?

funnylike

What's a reasonable average amount for basic cost living in LA (housing, food, transport, phone, internet..) for more context : single, would like to live in an independent studio in a nice area.

like

More Posts

I signed up for in-person DLaunch. Any idea where they’ll send me? I’m based in the Philadelphia area. Start date is March 7th.

like

Nobody ::

Makeup of lady HRs

Post Photo
funnylike

Happy Saturday, Confessions Bowl!

Post Photo
likeuplifting

Do you need an engineering degree to go into product management? I have a bachelors degree and a Masters degree in Digital Transformation, and I work as a C (soon to be SC) im Tech Strategy and Transformation. What are the next steps I should to to pivot into PM? (certifications, types of projects, etc)

like

Anyone just had the title changed at work without so much of as discussion? And changed in a way that is not a good way?

like

Hello everyone. I don’t have a DM feature active, please like this picture (I personally took) to help me get it active. Thanks!

Post Photo
like

Bain & Company 2nd year MBA candidate interviewing with Bain in 2 weeks. Any tips? Very new to interviewee led casing style. Bain & Company

like

Does EY help pay for hearing aids? Starting full time this fall and I think I remember reading something about it when I interned but I no longer have access

like

Who’s turned down an offer before? How’d that go?

like

ZS hiring for multiple roles... DM in case of any referrals!

like

What is the average base salary for most account managers in the tech space?

like

Can anyone suggest a good recruiter that focuses on in-house marketing or tech marketing positions? Moving to SF soon and wife is job hunting. Any leads appreciated 🙏

like

Finally bought my first house, pending inspection! My Spouse is starting to worry and is anxious that we overpaid due to the crazy market right now. Any tips to cope with this feeling?

like

Has anyone seen/experienced the firm taking away an offer that is signed by the hiree, other than getting a red flag from background investigation?

like

Hi guys,

I got my full and final settlement today but I can see no tax deduction. Does anyone know the reason. 4k tax used to be deducted every month till now. I also got gratuity and leave encashment along

like

Hi Fishes,

I hope all is well with you and your family.
I am writing with respect to my queries regarding
American Express

I wanted to understand what is the CTC for a data scientist with 4+ years of experience

Thanks in advance!
Any help if you can provide it would be really appreciated.

like

Is it worth it to leave a current FTE perm role to work for Google as an freelancing executive producer, 6+ contract with possible extensions pending budget, performance etc? Debating the massive brand name and experience but leaving job security etc. for it

like

Best CBD brands for sleep... ready set GO!

like

11 likes to enable DM ! Please help

like

Additional Posts in The Real Estate Bowl

First time landlord, tenants paid rent for the first time since moving in (as in not first month/security deposit) and they paid on time! Feels so good! Looking forward to buying SFH number 2 in a year or so

like

Finally bought my first house, pending inspection! My Spouse is starting to worry and is anxious that we overpaid due to the crazy market right now. Any tips to cope with this feeling?

like

Does anyone know the down payment requirements for a Jumbo loan?

like

Atlanta vs Savannah vs Tampa?

like

Does anyone invest in Milwaukee SFH or condos? Any neighborhood insights? I am thinking about branching out from Chicago and I am looking to connect! I have a RE agent license as well.

likesmart

Loopholes to using a VA home loan for rental properties? Have heard buy a duplex and rent half out but curious if there’s other opinions lol

like

This is the thread to boast about a creative deal that you made by using leverage and/or collateral.

like

Any one has rental properties in NJ ? If so on a average what’s your Cash flow?

like

Difference between owner and lender title insurance? An estimate says that owner insurance is optional under service you can shop for..can anyone help me understand the difference and whether I should indeed consider it optional ?

like

Does anyone know what this means?
"Can anyone, other than you, claim a homestead interest in the property that will secure repayment of the loan?"
My spouse and I are applying for the loan and would like to be on the title.

like

Looking to start investing/buying rental property. I want to acquire 1-2 per year. How do you find the right realtor/agent? I’m having hard time locating good one in the Houston market. Thoughts? How did you find yours?

like

Anybody know of a website where I could see rental vacancy rates, historical trends etc. if I am willing to invest in a specific zip code?

like

I own a rental with about 75k in equity. We have no issues with our renters but I’m wondering if it is time to sell. Do you all expect property values to continue to rise or do you think they ....

Commercial Real Estate: how long did it take you to know if this is what you want to work in?

Is $400-$450 too much to have bearings replaced on a washing machine?

like

I am wanting to start investing in real estate in the new year… I’m using this month to read up on it and familiarize myself with it. I am a true beginner and wanted to ask for any tips, tricks, advice, books, videos, magazines, podcasts, etc to start? Please let me know!

like

Is anyone investing in mobile home parks or self-storage facilities?

like

Hi - any good books recommendations for getting started on real estate investing?

like

Any thoughts on this book?

Post Photo
likefunny

Anyone recently got a mortgage through SOFI? can you please share your experience?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal