The size, condition, and location of your home can cause its market value to fall below your expected sale price. For this reason, you may wonder, “Can you sell a house for more than its appraised value?”
Alan with Pyramid Properties is your go-to when you need someone to buy houses in Memphis for cash without going through the traditional real estate process.
In this post, he draws on his industry experience to help you see how selling your home for more than the appraised value can be a hassle and why you’re better off selling for cash instead.
What Is a Home Appraisal?
A home appraisal is the process of determining a home’s resale value by means of a professional assessment. In the end, you’ll know your property’s true worth. But can you sell a house for more than its appraised value?
While it may be possible to do so, you’re more likely to run into the following key risks:
- The home could stay on the market longer than you would like
- The deal might fall apart if the buyer can’t secure the necessary financing
- The perceived inflated price may deter prospective buyers altogether
Why You Typically Can’t Sell Your House for More Than Its Appraised Value in Memphis
Appraisal Contingency Clause
A real estate contract will often have an appraisal contingency clause. This allows the buyer to cancel the deal if the home appraisal falls below the agreed price. You’ll have to reduce your ask accordingly, and you certainly don’t want to deal with the stiff buyer competition in the Memphis real estate market.
Mortgage Financing Limits
Many homebuyers in Memphis, Tennessee, rely on mortgages to purchase homes. Suppose your property is in such a sorry state that the appraisal value falls below your set sale price. In that case, your potential buyer may not get sufficient financing to meet that price, as the lender can only offer a loan amount limited to the home’s appraised value.
Impact of Comparable Home Sales
When determining the value of your home, the appraiser will review recent sales of similar properties in your neighborhood. If the data doesn’t align with the current market conditions, no buyer will want to pay for an overpriced property.
The Appraisal Gap
When selling your house for more than the appraised amount, the buyer must cover the difference in cash at closing. Sadly, most buyers aren’t in a position to fork out thousands of dollars to cover the appraisal gap. That means you’ll have to stick with the appraised value.
About Pyramid Properties’ As-Is Cash Offers for Homes in Memphis, Tennessee
If you’re still wondering, “Can you sell a house for more than the appraised value?” you can sell your property quickly for cash to Alan with Pyramid Properties. In this case, you won’t need a home appraisal, as he accepts properties in any condition.
Call Alan at (901) 504-5555 today for cash offers and even learn the best time to sell a house!