I’ll give you one guess which situation the housing market is in right now.
People are greedy!
The market has been incredibly hot.
The median home price in the US has increased around 15% from this time last year. 15%!!!! In some markets, it’s way above this! Whoa!!
You’ve probably heard that many homes are selling far above the list price. And, often, there is a bidding war that decides who wins.
In our part of the country, I’ve heard of homebuilders having auctions to sell their new houses. And the highest bidder has to waive the appraisal contingency to win. In other words, the builder knows you are paying so much money, the bank will never appraise it for that price. So they make you waive the contingency so you don’t opt out when the appraisal comes in low. You have to come up with the difference in cash.
It’s a great time to be a...