Hey guys, Walter Monteiro here just wanted to talk to you today a little bit about appraisals. So a lot of people are making offers or thinking about making offers on properties and we’re still seeing unconditional offers. So the one thing I would probably wanna warn you about more than anything else is just to be very careful with regards to the appraisal. Okay, make sure you got a plan being involved if you don’t.
If you’re going to throw caution to the wind and, and go in without a condition on financing, um, even if you qualify for the mortgage, even though you qualify for the payments, your TDS and GDS are all, okay, you’ve got a down payment verified, good job, all that kind of stuff. Remember the big thing is the appraisal values have changed quite a bit since February and what you think a property might be worth.
It’s no longer worth that so be very, very careful making unconditional offers because if the appraisal comes in light, you will be responsible for the full spread. So case in point, if you buy a house for, let’s say $750,000, and the appraisal only comes in at seven, you have to have that extra $50,000 in order to put down. Okay. Because the bank will base their evaluation on the financing based on the 700,000, rather than the seven 50. So be very careful.
If you’re working with a realtor, make sure you really lean into them because they should be familiar with values at the same time. They’re not appraisers, but they’re very familiar with what’s going on in the marketplace and we just don’t want to see anybody get stuck, talk to you soon and have a good night.
