Why would anyone pay more for a home?
Before we discuss the possibility of someone who wants to pay more for a home than what it is worth, we need to consider what we’re talking about when we say worth. Is it the appraised value, assessed value, or fair market value of the home?
Assuming we’re talking about the fair market value of the home, the answer is: yes. You can ask a buyer to pay as much for the home as you’d like. Will you get it? Probably not.
Two problems creep in immediately if you’re asking a buyer to pay more than the home is worth. One, why would a buyer pay more for a home than what it is worth, when they can get a home of similar quality at a better value? Two, the home won’t appraise for a higher value than the appraiser thinks it is worth. The bank is not going to approve a large increase in the loan amount vs. the appraised value of the home. So unless you can find a foolish cash buyer, you’ll want to price your home right the first time.
If your home is on the market for less than it’s worth, there may be reason for a buyer to pay more for your home. Consult with a Realtor if you have questions about what your home is worth.
image courtesy of Michael Dunn~!
