Peter Mohylsky.   BRIX REALTY, BRIX REALTY -DESTIN (Brix Realty - Destin)

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Rainmaker
1,001,643
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

If an offer does not specify a price, I am not sure you will have a legal contract.

An offer with no appraisal contingency achieves the same goal. An addendum can also specify that the buyer will pay up to a specific amount above the offer price if the house does not appraise.

Jun 17, 2022 06:57 PM
Ambassador
2,604,853
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Make sure you know who the appraiser is.  Maybe get two appraisals.

Jun 17, 2022 04:19 PM
Rainmaker
786,398
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

I've never received an offer like that but think it's kind of brilliant! 

Jun 17, 2022 03:58 PM
Rainmaker
1,135,811
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I hear a can of worms being opened as I type this. Best of luck if acknowledged by the Seller.

Jun 18, 2022 04:41 AM
Ambassador
2,049,694
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

No, I have not received an offer $X over appraisal. Interesting. Perhaps they think the house is overpriced and are saying they'll pay whatever it's "worth" plus some???

Jun 17, 2022 03:14 PM
Ambassador
3,938,845
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Hmm, I have not seen that before either but that certainly would be interesting.  Good for the buyer if it appraises low and good for the seller if it appraises high, haha.

Jun 18, 2022 05:00 AM
Rainmaker
600,846
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Interesting offer.  Will your seller accept?  Sounds good for a seller in this changing market.

Jun 17, 2022 09:08 PM
Rainmaker
1,134,758
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Yes. Often. To help secure the deal we use an addendum to say that the buyer if borrowing will pay the difference between appraised value and offer price so the Seller does not have to worry about having to put the home back on the market along with the necessary funds to accomplish the overage.

Jun 17, 2022 06:43 PM
Ambassador
3,386,844
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Many times over the years.   We always used our addendum for that situation to put everything in black and white and structure it correctly.

Jun 17, 2022 04:58 PM
Rainmaker
938,505
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

We've had 'price to be determined at end of lease term by 2 independent appraisals paid for by each principal' when the tenant was gonna buy the property. Which one used would depend. LOL
I see actually nothing wrong with this, but I'd want to make sure the appraisers were local (hard in my area, so many come from 1 to 6 hours away and do not know our tribal customs!)

Jun 17, 2022 04:13 PM
Rainmaker
2,684,052
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Happy makes the rounds when we all agree on the subject...

Jun 17, 2022 04:01 PM
Rainmaker
1,048,897
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I can see a can of worms opening on that one.

Jun 18, 2022 06:35 AM
Rainmaker
4,510,727
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

My réponse would be simple, upon approval of my buyer, "you own it for $10,000 over appraisal, enjoy it". We are moving on!

Jun 18, 2022 04:32 AM
Rainer
302,047
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

who chooses the appraiser? 

Jun 18, 2022 07:11 AM
Rainmaker
1,425,100
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Wow, now that is a new one!

Jun 18, 2022 07:07 AM
Rainmaker
1,759,539
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

I think that there has to be a number of some sort. If it appraises low ... what's the sellers expectations?

 

Jun 18, 2022 06:02 AM
Rainmaker
2,125,116
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Lots of "buyer will pay $1,000 (and up dollar amount figure) over top bonafide offer seller receives" Peter Mohylsky. BRIX REALTY . That how the market behaves to come out on top when too many buyers, not enough inventory to go around. Cash and carry, bank or owner financed... the above and beyond clause is one method to come out on top once the smoke settles. 

Jun 18, 2022 05:49 AM
Rainmaker
5,266,083
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Appraisers know the price they are trying to attain before they get to the house, so not sure how this would all unfold.

Jun 18, 2022 05:11 AM
Ambassador
2,105,842
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Need more info about the terms of the contract including price. Are you saying no price has been offered? If that is the case, this could get quite interesting. 

Jun 18, 2022 09:55 AM
Ambassador
3,145,821
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I have not received an offer like that.  If I did, I would most definitely get a legal opinion. 

Jun 18, 2022 09:53 AM
Ambassador
2,759,893
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Getting an appraisal first would be a good strategy and make sense for this scenario but you do have to offer a price in the REPC.

Jun 18, 2022 06:39 AM
Rainmaker
518,744
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I have never received an offer like that or even heard of one like that. 

Jun 18, 2022 06:39 AM
Rainer
2,825
Tricia Kowaleski
Engel & Volkers - Naples, FL
Luxury Real Estate Agent

I haven’t but I think it’s a nice move to be honest! If the buyer really wants the home and they have the extra cash to give why not, especially if it’s just $10,000 over appraised value and not $50,000

Jun 20, 2022 01:53 PM
Rainmaker
808,597
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

No, You have to have a price in our contract. Perhaps an addendum could be added for it to be $10k over appraisal. What a quandary the appraiser would have.

Jun 19, 2022 06:57 AM
Rainmaker
914,708
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

That should get the offer to the front of the line.
However, a real number must appear somewhere.
An offers structured like this suggests weak representation on the buyers part. Be prepared to do the work on both sides.

Jun 19, 2022 05:35 AM
Rainmaker
1,549,405
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I've seen 1 mln over asking on 2 mil house~ last week. No appraiser necessary. 

Jun 18, 2022 11:34 PM
Rainmaker
687,723
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Not yet, I wouldn't want my clients to accept this type of offer as a buyer can always find a reason to back out.  I would prefer an exact price from a highly qualified and motivated buyer.

Jun 18, 2022 11:28 PM
Ambassador
3,071,352
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

The offer would have to spell out who was ordering the appraisal. But it's not necessarily a bad offer today. 

Jun 18, 2022 02:30 PM
Rainmaker
2,051,605
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

That could go in different directions

Jun 18, 2022 12:00 PM