Multiple offers can occur during the sale of a home when more that one party wants to buy the home. This most often occurs when the housing inventory is low. When multiple parties want to purchase a home it can lead to overbids of the original listed price. This is happening a lot in the market right now because our inventory is low and there are more and more people moving to San Diego every year. The problem is that this can often lead to a very high purchase price, which is hard to support with similar comparables.
It can be beneficial to pay attention to what is occurring in your area. Be aware of what the market is doing and what other properties are selling for in your neighborhood. You should also consider giving the appraiser an information packet to be sure he knows everything you know about your neighborhood trends.
An information packet will provide the appraiser with more information about your property and the trends of your neighborhood. This includes any updates that have been done, details that have been added, additions, information about the neighborhood and if you have received multiple offers. Give the appraiser all evidence you have to support your purchase price.
Providing the list of multiple offers will show the appraiser evidence that there is more than one person willing and able to pay the higher purchase price. You can go one step further by providing the contracts for the appraiser to review that will show him exactly how the purchase price was derived. This does not guarantee an appraisal will come in at purchase price, however by providing the appraiser with information with evidence that the market is going up and a higher value may be supportable.
There are instances where multiple offers does not equate to a higher appraised market value because sometimes people will offer more just to be sure they get the property, which has nothing to do with the market value.
Appraisers are required to provide at least three closed sales and two listed sales to support the market value. These comparables will be within a range and the appraiser will determine the value based on these. Low inventory, high demand and days on market all help determine the market trend and will help support value being high or low.
There is no guarantee of value in an appraisal, the appraiser will take all available data and determine the market value based on what is happening in the market of your neighborhood. By doing your part and sharing what information you may have you can help the appraiser better understand the market specific to your property.
Please contact our office with any questions you may have or to schedule your appraisal appointment at 760-741-7699, email@example.com or use our contact page on our website.
Brandlin Appraisals Inc. specialize in helping people who need appraisals for estate purposes, divorce, date of death, bankruptcy, FSBO’s and more throughout San Diego county. For more information please contact us at (760)741-7699, or visit our website at Brandlinappraisals.com, or email us at firstname.lastname@example.org
San Diego, CA // Real Estate Appraiser
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