When high bid is over appraisal in hot housing market
The demand for housing in Bucks and Montgomery counties has skyrocketed this year, as the local economy pushes itself out of the pandemic. For months now, bidding wars among buyers have pushed prices up to unprecedented levels.
“Buyers are ravenous and desperate, which makes for no slowing of the market,” said Alex Shnayder, a real estate attorney and agent with Re/Max in Feasterville.
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But as many buyers are bidding higher than the asking price, some appraisals that help finance these hot market transactions are coming in too low to seal the deal. What’s a buyer to do when the appraisal needed for a mortgage doesn’t come in near the price they’re offering the seller?
It’s a tricky question, Realtors and mortgage brokers agree. And one that can stop a sale in its tracks.
“I’ve had several sales where people overpaid, and then when the appraisal came in,…