The following post was written by Linda O'Konieweski and Printed in the March 22-28, 2013 publication of the New England Real Estate Journal.
Successful agents will often be heard cautioning desperate buyers in hot markets with the following sage advice: “If you want this house, count on it selling significantly over asking, and the only way a seller will consider your offer is if you waive your home inspection and financing contingency because you are going to be competing against strong, cash offers. Maybe they’ll let you do a home inspection for informational purposes only. And by the way, did I mention that it’s very likely that the bank appraisal will come in lower than your offering price? Prices are ticking up and we don’t have comparable home sales at today’s new prices. So naturally you are going to have to put more money down than you expected to secure your mortgage and you need to be mentally prepared for the bank to tell you it isn’t worth what you are paying. Otherwise, don’t bother to place an offer, you’ll only be setting yourself up for failure and disappointment.”