Win The Bidding War With An Appraisal Gap Guarantee

With bidding wars becoming so commonplace around the country buyers have found themselves trying to think outside the box in order to win their next attempt. By attempt, I mean the next go around after losing out on their latest quest to own a home.

It is not unusual at all for homebuyers to lose out to a cash buyer. Cash bids have become far more prevalent with buyers looking for every edge in order to land their dream home. Unfortunately, the majority of folks don't have the luxury or ability to pay cash.

Real Estate agents are often asked what is the next best thing. There are essential two things you can do to strengthen the appeal of your offer financially. One is to waive the mortgage contingency and the other is to offer coverage for any appraisal gap. Waiving your mortgage contingency can be a significant gamble and should only be done when you are 100 percent certain you will get the loan.

If you don't have a mortgage contingency to fall back on and you can't get a loan, you'll be out a significant amount of money. In most parts of the country, you will be required to come up with earnest money that amounts to 1-5% of the purchase price. That is certainly no chump change.

Of course, sellers love seeing there is no mortgage clause because it takes away a significant financial risk from the buyer.

Another risk the seller has in today's real estate environment is the appraisal coming in lower than the agreed-upon purchase price. There isn't a seller in the world that wants to find out in the middle of their transaction that the house didn't appraise.

One of the best ways to ease a seller's mind is to offer an appraisal gap guarantee. Take a look at the detailed resource above found at Maximum Real Estate Exposure which takes you through exactly how an appraisal gap clause works in a real estate contract.

By offering appraisal gap coverage you can take a big worry out of the seller's mind. It just may be the difference between your offer getting accepted or the seller choosing someone else.