The Importance of Having an Advocate in Your Corner
Navigating appraisal gap addendums, you may ask, what does this even mean? In the dynamic world of real estate, having a dedicated agent who genuinely has your best interests at heart can be a game-changer. This article delves into a recent experience involving Appraisal Gap Addendums, underscoring the vital role of a knowledgeable advocate during the home-buying process.
Setting The Stage
Around 30 days ago, our clients were eager to secure a home. With the goal of presenting a compelling offer, we proactively reached out to the listing agent to assess the competitiveness of our bid. To our surprise, there were no other offers on the table.
Discovering the absence of competing offers, a conversation with the listing agent revealed their contemplation of an Appraisal Gap Addendum. This contractual provision requires the buyer to cover the difference between the appraised value and the agreed-upon purchase price or an agreed-upon set price gap. For example, with an appraisal gap addendum, a buyer may agree to bring $5,000.00 out of pocket over the short appraisal value.
Sensing an opportunity, the listing agent suggested this approach for a better chance at success. However, in reality, it was an effort to secure more funds for the seller. While the listing agent was just doing his job for his clients, I also have a responsibility to my clients, and that is to protect their hard-earned money too.
A Time and A Place For Appraisal Gap Addendums
Certainly, it’s crucial to acknowledge that specific scenarios may necessitate the use of an appraisal gap addendum. Nevertheless, our discussion underscored the paramount importance of having an agent who prioritizes their client’s financial well-being. While we were open to exploring the possibility of an Appraisal Gap Addendum with our clients, our inclination leaned towards rejection, particularly in situations where no other offers were on the table. It’s vital to recognize that there is a time and place for these addendums. However, when no competing offers are present, advising a buyer to offer additional funds is ill-advised. Ultimately, the decision lies with our clients, even if our advice steers them away from it.
Knowing When to Stand Firm
Our decision rested on the understanding that our clients had the upper hand in this negotiation. With no competing offers in sight, there was no need to risk thousands of dollars simply to accommodate the seller’s desire for additional funds.
The Power of Informed Negotiation
Realizing the strength of our position, the listing agent presented our offer and the seller promptly accepted our initial offer within 30 minutes. This experience highlights the delicate balance between assertiveness and recognizing when you hold the upper hand in a real estate transaction.
The Value of a Client-Focused Advocate
This story serves as a testament to the significance of having a seasoned and client-focused agent. A professional who not only comprehends the intricacies of real estate negotiations but also prioritizes the financial well-being of their clients. In a market where decisions can have substantial financial implications, having an advocate who navigates the process with your best interests at heart is invaluable.
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SLR Experts
Streetlight Realty is located in Washington Twp, OH, and serves the entire Miami Valley. Whether you are looking to buy or sell real estate, we have experts who can assist you in the process. You can call Jonas Helbert at 937-626-4181 or Katie Masters at 937-901-8177 with any Real Estate questions. We are here to help!
