Selling your home with Exactly real estate is a low-stress experience and you can walk away with more money in your pocket
By Laura Briedis
Homeowners who have been thinking about selling their homes are jumping at the opportunity right now to profit from the hot real estate market—and rightly so. Home prices are at record highs, often garnering multiple bids over asking price. But like most things in life, there also is a flipside.
“Home prices have gone up so much, so fast,” says Kevin Wasie, owner of Exactly real estate company. “But this is creating a new set of problems most homeowners don’t think about, specifically, short appraisals. Since homes are selling so fast, it is difficult for banks to find matching home comparables, especially for more unique properties, which can result in a short appraisal. Currently when selling a home in the $300,000 to $600,000 range, one in seven properties is resulting in a short appraisal.”
A short appraisal occurs when the home’s appraised value is less than the buyer’s offer, and the lender won’t approve the loan. If, for example, you are selling your house for $400,000 and it is only appraised at $350,000, the bank will only lend money up to $350,000.
When a short appraisal occurs, Kevin says there are six options:
- The buyer needs to come up with additional cash on top of the down payment to cover the difference between the sale price and appraised value.
- The buyer can switch to a different bank to get a new appraisal.
- The seller can reduce the sale price to the appraisal value.
- The seller can appeal the appraisal.
- The buyer and seller can renegotiate a new price where the buyer comes up with some cash and the seller reduces the price some.
- The seller and buyer can choose to walk away from the deal.
The key is to work with an experienced real estate agent so you can prepare for potential issues.
“I recommend to my clients not to always accept the highest bid, especially if there is a cash offer,” says Kevin. “Homeowners need to evaluate all offers to see which has the best chance to get to the finish line. If a buyer has a cash offer, the appraisal does not matter since they don’t need a bank loan. In multiple offer scenarios over asking price, cash can be king. But before you even get to negotiating, pricing your home correctly is the very first step and is the most crucial.”
At Exactly, the real estate agents do an in-depth pricing analysis up front so homeowners can confidently set a listing price.
“For the most accurate valuation of your home, our pricing analysis takes into account what is happening super locally, from the local unemployment rate, current interest rates, the macro community of what has sold in your school district, comparable homes that have sold with similar characteristics, and the inventory of homes currently on the market,” says Kevin. “Plus, doing this upfront gives us the data we need in case we have to appeal an appraisal.”
If a homeowner needs to appeal an appraisal, Kevin takes a custom approach. Earlier this year, for example, a house that Exactly sold in Brunswick for $400,000 was only appraised for $360,000. However, Kevin noted that the appraiser was from Maple Heights and was not familiar with this market and did not use relevant comparisons, and he was able to successfully appeal the appraisal.
At Exactly, the real estate agents handle everything from pricing analysis and marketing of the home to negotiating the final deal and delivering the keys to the buyer for a $4,800 listing fee—instead of a percentage of the sale. If there is a buyer’s agent, Exactly also helps you set a fair buyer’s agent commission.
“We save homeowners thousands of dollars,” says Kevin. “So they profit more and worry less.”
To list your house or for more information, call 866-515-6789 or visit ExactlyUSA.com. Exactly Real Estate is located at 209 South Main Street, 6th Floor, in Akron.