It's all about the appraisal. I'm noticing in these days of growing popularity of Las Vegas Real Estate that the single biggest factor to getting a house comes down to the appraisal. Sellers have inflated expectations on the value of their homes. Many of them think that their house is automatically worth $5,000 more than the last house that sold in the neighborhood. Buyers, growing increasingly desperate by the lack of availability and increased competition, are making offers close to and above list price.
The great equalizer is the appraiser. Without them, Vegas would be blowing up again to 2006 portions.
Sellers need to have a solid understanding of their home's value, based on comparable sales in the area and the condition of the home itself. Be prepared ahead of time to re-negotiate if the appraisal comes in low. What is your true bottom line? If you end up putting the house back on the market, are you just setting yourself up to face the same problem next month?
Buyers need to be in control of their finances and purchasing power. Will you be able to compromise by paying over the appraised value? It's allowable, and sometimes the smart thing to do. By the time the appraised value is known you've already sunk $500 into the appraisal and another $350 or so into the inspection. Is it worth it to start from scratch?
A good agent will have both Buyers and Sellers prepared going into the Purchase Agreement. It's not enough to just keep your fingers crossed and hope for the best.