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Have an interested buyer with 80% loan approval. Dad is helping daughter. They are at point of writing an offer, we spoke with lender several days. Dad thinks we aren’t willing to work with price. We think that misunderstanding is cleared up. However, he wants us to lower our price and then he wants to have appraisal contingency stating if it is low he can back out. However he has verbally agreed to paying all closing costs if appraisal is near his lower price. What is the best contract language to cover bases. We have 62,500 asking price, what can we legally do to help them out but not decrease our return. We have comps in area and feel that we reasonably should be able to get 58000 to 62500. Only ONE house is exactly like ours, with square footage/ remodel, etc. Our home is one of the better homes in neighborhood. New Roof, New Central H/A, etc. (one owner)
apprasials are not an exact science and can easily vary by 10% or more. If you have comps (which you), then you should have no problem and the appasial will come in very close to the price regardless of whether its the “high” price or the “low” price. Banks don’t like to see large difference between the sale price and apprasials. I’ve bought at FMV and deep discounts and somehow the apprasials come in within a few thousand dollars…go figure.
I would say with the high price and agree to negoiate if the apprasial comes in low (which it probably won’t)