Submitted my first ever offer. Can someone make sure I’m not screwing myself?

I’m 28, make $175k/yr. Live in Minnesota.

Using the VA Home Loan with 0% down, and my realtor is an extended family member whom I trust.

1700 sq/ft home in a growing Main Street suburb is listed at $450k. Interior was 100% remodeled 2015-2018 and is near perfect. Exterior is just as pristine, besides a massively ruptured foundation in the detached garage.

With my realtors guidance, my offer is: $450k, will offer $5k above any higher offer. Won’t charge sellers for their rent-back period of 1 month. Inspection Waived. $5k earnest.

Realtors reasoning: I can keep signing counter offers until I reach my stopping point, and then just walk away.

There are 8 other offers, and I’m waiting to hear back. I’m just assuming the price is going to rise very quickly, and my biggest concern is obviously the appraisal gap. The $450k list price honestly seems low given the immaculate state of this home, and Zillow has the neighboring house at $500k as of last year. Other homes in the neighborhood range from $375k – $420k.

No chance I can pull $50k out of my ass to cover. Best I can do is ~$20k. So really my only hope is that it appraises close to the sale value?

What if I close on an offer, hand over my earnest money, and then 2 weeks later find out the appraisal gap is $70k? Realtor says I get my earnest money back, but that doesn’t seem right.

submitted by /u/HuskyInfantry
[link] [comments]

I’m 28, make $175k/yr. Live in Minnesota. Using the VA Home Loan with 0% down, and my realtor is an extended family member whom I trust. 1700 sq/ft home in a growing Main Street suburb is listed at $450k. Interior was 100% remodeled 2015-2018 and is near perfect. Exterior is just as pristine, besides a massively ruptured foundation in the detached garage. With my realtors guidance, my offer is: $450k, will offer $5k above any higher offer. Won’t charge sellers for their rent-back period of 1 month. Inspection Waived. $5k earnest. Realtors reasoning: I can keep signing counter offers until I reach my stopping point, and then just walk away. There are 8 other offers, and I’m waiting to hear back. I’m just assuming the price is going to rise very quickly, and my biggest concern is obviously the appraisal gap. The $450k list price honestly seems low given the immaculate state of this home, and Zillow has the neighboring house at $500k as of last year. Other homes in the neighborhood range from $375k – $420k. No chance I can pull $50k out of my ass to cover. Best I can do is ~$20k. So really my only hope is that it appraises close to the sale value? What if I close on an offer, hand over my earnest money, and then 2 weeks later find out the appraisal gap is $70k? Realtor says I get my earnest money back, but that doesn’t seem right. submitted by /u/HuskyInfantry [link] [comments]

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