At Least Three "Buyers" Have To Be satisfied When Selling Property

When selling your home or commercial property at least three people have to be satisfied with the price before you can have a successful close. Besides the actual buyer and eventual owner of the property, the loan or mortgage appraiser and the underwriter of the loan must all agree about the price.

The underwriters will not be satisfied if the property is appraised for less than the value of the loan as they risk not recovering their investment if the buyers should default. In this case, they will usually require a larger down payment, often forcing the seller and buyer to renegotiate the price if the buyer does not have enough money for the higher down payment. If the property will be leased, the tenant and existing marketing have something to say about the rental rates and the subsequent ROI for the buyer, which in turn could effect the willingness for the underwriter to authorize the loan or may require more downpayment from the buyer.

So, the seller must convince the buyer that a property is worth the asking price and in turn the appraiser must agree that the house is valued properly in relation to other compared properties and finally the loan underwriter must have confidence that the amount borrowed by the buyer is more than offset by the value of the property.

Source: Financialwire

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