Bidding Wars and Low Appraisals

The current real estate market in Charlotte has a very low inventory for homes being sold.  One result of low inventory is the increased likelihood of multiple offers being submitted for a single property.  This results in bidding wars where the offers submitted by buyers far exceed the original listing price to ensure that their offer will be accepted over the other offers.  However, what many buyers are not aware of is that their winning offer also exceeds the actual appraised value of the property. When the property appraises for a lower amount than what was offered, who should bear … Continue reading