Every seller wants to get top dollar for their home, but it is important not to let this aspiration get in the way of your better judgment. Today I would like to go over a common appraisal scam that certain unscrupulous buyers have been employing lately. To explain this scam, let me paint an example scenario for you.
Imagine you have a home with a market value between $780,000 and $820,000. You place this home on the market for a list price of $800,000, then a frustrated buyer comes along and makes an offer far above this figure—let’s say $900,000. Should you take this offer?
As tempting as it is, you shouldn’t. An offer that sounds too good to be true probably is. This over-inflated offer may be part of an appraisal scam, which is where buyers submit an intentionally outrageous offer that they know won’t match the appraisal. They do this so that they can get you to the negotiation table and secure a much lower price.
To avoid having this happen, always consult with your Realtor. What our team does when faced with this circumstance is to insist that the buyer remove the appraisal contingency if they are serious about that high of an offer. This way, they cannot go through with their plan if it is a scam. If a buyer making an offer like this can provide proof of funds and is willing to waive the appraisal contingency, then everything is good to go. Otherwise, it is best to not let dollar signs cloud your decisions.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.