BUYER APPRAISAL
Home Buyers, Why do you need a Real Estate Appraisal?
How much does it cost if you overpay
for that home or condo?
Could there be a problem when one
pays the top price in a market?
How much does it cost if you overpay
for that home or condo? In a seller's
market, it is not uncommon for a buyers to find themselves in a b idding
war over a house. And the lucky bidder gets the house! But
what was the cost? For example,
lets take the Smith's, they are in a bidding war for a house that
they really want and are willing to out bid other offers by
overpaying for the house. They offer $265,000 for a property
that's market value is more in the range of $250,000. So
they overpaid $15,000 they got the property. Now what's the
cost? What was that saying on how to make
money? Buy high, sell low .... No No No. Buy high, sell higher ...
not quite ... very risky. Buy Low, Sell High ...YES! That is
how anyone many money in real estate! If you paid an inflated
price at the start your equity buildup is off to a slow start.
If you are forced to sell before there is significant appreciation
you may have to bring money to the closing.

In addition, that fact that you have paid $15,000
over market value means that your mortgage is higher that it would
have been. If you owned the house for 10 years the accumulated
interest that you paid on the extra $15,000
would also be substantial.
If you are compelled to overpay for various reasons
in a bidding war, know why you are overpaying and have a game plan
that makes sense. Keep a cool head and don't let
buyer emotions influence you or get an independent professional
opinion. Get an INHOUSE Appraisal. |