Appraisal Gap Coverage - Make Your Offer More Competitive
Channel: Living in Boston & the Burbs by Jeffrey Chubb
Date: 2021-02-16

How can I Make My Offer More Competitive? Appraisal Gap Coverage is a great option for home buyers who have a little extra money to use just in case or someone who is willing to play with some numbers on a spreadsheet (when applicable). 

The Appraisal Gap Coverage option is a good mix between making a seller happy and limiting a buyers exposure to a bad appraisal. This is especially an amazing option when you are not actually bringing additional funds to closing, but moving money around on a spreadsheet. This and using some other items on the the Chubb Homes Team Buying Power Checklist will help make your offer more competitive.

For a seller, waiting for the appraisal is one of the more stressful parts of the transaction. Will the appraiser see the value in the property and agree with the agreed upon price? Because if the property doesn't appraise, then it can ruin the deal in late hours of the transaction. Many times the seller has packed and there are severe hardship to put the house on the market.

This is why offer Appraisal Gap Coverage can help subside some of this seller anxiety. And relieving some seller anxiety may ultimately be the reason why a seller picks your offer in a competitive situation. 

In this episode, Jeffrey and Jason talk about the what Appraisal Gap Coverage is and the option of using it. They also talk about the risk involved. 

The Buyer Power Checklist breaks down an offers buying power into three different categories. A buyer's offer will either be in the 'Low', 'Average' or 'High' Buying Power category.

https://www.boston2.com/blog/how-can-i-make-my-offer-more-competitive-the-buying-power-checklist/