Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Wednesday, April 29, 2026
It's a competitive market right now in some price ranges and areas -- particularly in and just around the City of Harrisonburg, for under $500K. If you've made a few offers and missed out to other buyers, you might want to keep reading...
Do you like the house (the next one we see) enough to pay more than the appraised value?
Some buyers are willing to make offers that say exactly that.
For example...
Let's say a home is listed at $450K and five buyers make offers. It might look something like this:
Offer 1 -- $450K, contingent on appraisal
Offer 2 -- $450K escalating to $460K, contingent on appraisal
Offer 3 -- $450K escalating to $465K, contingent on appraisal
Offer 4 -- $450K escalating to $470K, contingent on appraisal
Offer 5 -- $450K escalating to $470K, contingent on the appraisal being at least $450K
Buyer #5 will probably get the house. Because they've essentially said: "We'll pay $470K even if the home only appraises for $450K."
What Does That Actually Mean?
If the home appraises at $450K and the contract price is $470K, that $20K gap often comes out of the buyer's pocket as an increased downpayment. So the buyer needs to be comfortable bringing that extra cash to closing. Maybe that's fine for them. Maybe they've missed out on three or four other houses and they've decided... this is the one, and they're not losing it over $20K.
Of note -- the house might end up appraising for $460K or $470K. Appraisals don't always come in low. But Buyer #5 has already made peace with the possibility that it might.
A Few Important Notes...
If you pay $470K for a home that appraises at $450K, selling it again in six months or a year could be challenging. But if you know (or think) you're going to be there for five or ten years? That will likely work out jsut fine.
Being willing to pay more than appraised value is not right move for every buyer for every house. But for some buyers, with some houses, it will be the strategy that helps you actually buy a house.
So... would you be willing to pay more than the appraised value? If the answer is yes, make that clear in your next offer.
Do you like the house (the next one we see) enough to pay more than the appraised value?
Some buyers are willing to make offers that say exactly that.
For example...
Let's say a home is listed at $450K and five buyers make offers. It might look something like this:
Offer 1 -- $450K, contingent on appraisal
Offer 2 -- $450K escalating to $460K, contingent on appraisal
Offer 3 -- $450K escalating to $465K, contingent on appraisal
Offer 4 -- $450K escalating to $470K, contingent on appraisal
Offer 5 -- $450K escalating to $470K, contingent on the appraisal being at least $450K
Buyer #5 will probably get the house. Because they've essentially said: "We'll pay $470K even if the home only appraises for $450K."
What Does That Actually Mean?
If the home appraises at $450K and the contract price is $470K, that $20K gap often comes out of the buyer's pocket as an increased downpayment. So the buyer needs to be comfortable bringing that extra cash to closing. Maybe that's fine for them. Maybe they've missed out on three or four other houses and they've decided... this is the one, and they're not losing it over $20K.
Of note -- the house might end up appraising for $460K or $470K. Appraisals don't always come in low. But Buyer #5 has already made peace with the possibility that it might.
A Few Important Notes...
If you pay $470K for a home that appraises at $450K, selling it again in six months or a year could be challenging. But if you know (or think) you're going to be there for five or ten years? That will likely work out jsut fine.
Being willing to pay more than appraised value is not right move for every buyer for every house. But for some buyers, with some houses, it will be the strategy that helps you actually buy a house.
So... would you be willing to pay more than the appraised value? If the answer is yes, make that clear in your next offer.
