Ever heard of an appraisal gap? Before you decide to use this tactic in an offer, talk to your lender and real estate agent. Let’s go over what an appraisal gap is in this video, “What is an Appraisal Gap?”:
What is an Appraisal Gap Example?
When you’re purchasing a home, should you use an appraisal gap? Let’s go over this example. When you write a contract on a home with an appraisal gap, let’s say the home is listed at $300,000, but you offer $325,000 with an appraisal gap guarantee. You have just guaranteed that you will pay $325,000 no matter what the appraisal comes in at.
So if the appraisal comes back at $305,000, you now have an additional $20,000 that you have to come up with out of pocket. So when you offer an appraisal gap, you are guaranteeing to that seller that the dollar amount that you offered for their home is going to be the dollar amount that you pay for the home.
So before you offer an appraisal gap guarantee, talk to your real estate agent and your lender and go over the numbers with them. Make sure this would be in your best interest before you include an appraisal gap in your offer.
Want to Know More About Buying A Home?
As you probably already know there is a lot to the home buying process. If you have more questions about buying or building a house, don’t worry! We have a list of common questions that homebuyers have HERE.
If you don’t see your question on this list, then please reach out! I would love to answer all of your buying questions.
Want more information? Download my Homebuyers Guide: Homebuyers Guide
If you’re a first time home buyer, download this Buyers Guide: First Time Homebuyers Guide
Have More Questions on Buying a House in Birmingham, AL?
So, buyers, would you ever include an appraisal gap in your offer? There’s a lot to decide when you’re buying a home. I’m here to help if you have more questions about the home buying process! Make the homebuying process easier on yourself by having an expert real estate agent guide you through the process. If you’re looking to buy or build a home in the Greater Birmingham, Alabama area, let me help you. If you’re new to the Birmingham area or looking to relocate to Birmingham, Alabama, please feel reach out to Dianna Howell with The Howell Group: 205-568-5435 or dianna.howell@kw.com
For information on Pelham, Alabama or Birmingham in general, contact real estate agent Dianna Howell, a top buyers agent in the Birmingham, Alabama area.
Visit our website for more information on the Birmingham area: https://diannahowellrealtor.com/category/lifestyle/
🔑🏡 Want to learn more about the buying process? Then read this article for 6️⃣ easy tips: Six tips to Buying a Home
📕 Read more about the Birmingham area in this post: Relocating to Birmingham, Alabama
I have plenty of resources and information to provide including my expert help. Call me today and let’s get started on the search for your new home, whether you want to buy or build!
Sincerely,
Dianna Howell
The Howell Group of Keller Williams in the Birmingham Alabama area
Top Birmingham Real Estate Agent
