Tight Housing Market Means More Cash From Buyers
✉️ Want to forward this article? Click here.

We know that in the current market homes are getting snapped up within days of hitting the market, receiving multiple offers and often seeing bids much higher than the asking price.
This led UrbanTurf to wonder: What happens when the final sales price is higher than the appraised value of the house? How does that impact a buyer’s overall outlay?
William Slosberg of First Savings Mortgage Corp. offered some insight.
Since lenders lend based on either the sales price or the appraised value, whichever is lower, Slosberg tells us that a buyer who wins a home by bidding up the price to well above what is being asked should be prepared to make up the difference outside of the loan.
“If the borrower was applying for an 80 percent loan, the lender would lend him 80 percent of the appraised value and the borrower would have to come up with all of the rest of the money themselves,” he said.
Of course, many buyers would just walk away from a deal in which the appraised value comes in lower than the price they offered, but there are always those that love a place so much that they would be willing to throw in the extra cash regardless.
Similar Posts:
See other articles related to: lending, loan, seller's market
This article originally published at https://dc.urbanturf.com/articles/blog/tight_housing_market_means_more_cash_from_buyers/5517.
Most Popular... This Week • Last 30 Days • Ever

Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »

In this article, UrbanTurf looks at the estimated annual maintenance costs associated... read »

Today, UrbanTurf heads down to a portion of Southwest DC to see what large residentia... read »

The third phase is a 10-story residential building with approximately 180–233 mixed... read »

The late California senator's Spring Valley home went under contract over the weekend... read »
- First-Timer Primer: Virginia's Home Buyer Assistance Programs
- What Are the Annual Maintenance Costs When You Own a Home?
- The 6 Big Residential Projects (And Conversions) In The Works For Southwest DC
- Map Amendment Looks To Pave Way For Final Phase Of DC's Northwest One Project
- Dianne Feinstein's DC Home Finds A Buyer
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro