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Tuesday, August 30, 2016

Offering More Than List Price... When, Why and the Pitfalls.

How can a buyer compete with others when they are short on closing cost cash?   The most common response is to ask the seller for closing cost assistance. 

But how can one do this in a market like Melbourne, Florida where there are often multiple offers?   This most often involves a higher than usual offer price.  It would be unrealistic to expect a seller to "pay closing costs" if another offer is on the table at the same price.  

This is a strategy FSBO sellers will sometimes use when trying to sell to a buyer who has an agent.   The "For Sale By Owner" seller will try to get a higher sale price to "offset" real estate agent fees.

If this technique is employed the buyer should be advised up front.  Some buyers will opt to pay their own real estate agent when buying from a FSBO.

Of course bumping an offer price up involves  potential pitfalls which all should be aware of from the start.   The major pitfall?  The appraisal comes in low.

So what  are the options of the appraisal is low?    Here are the answers....
Ready to buy a home in Viera (Melbourne), Florida?  Call or text me at 321-693-3850.

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