December 10, 2021
In San Francisco’s competitive residential real estate market it is becoming increasingly common for buyers to waive a home appraisal contingency. Here are a few things to understand about taking that step:
To make their home buying offer more competitive. Waiving this contingency appeals to home sellers by limiting the possibilities the deal will fall through and securing the sale of their property.
This is actually quite common and has been increasingly so in 2021. According to CoreLogic data, 19% of all home appraisals came in lower than the contract price in May 2021. In a hot market like the Bay Area, appraisal values do not move as quickly as the forward-looking market. Appraisers are bound to base the home value on recent but closed transactions.
When your home appraises for less than its purchase price, there are a few potential options:
Have an additional question? Drop us a line. We are here to help San Francisco home buyers and sellers make the right decisions on their own terms.
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