Santa Clarita Real Estate Agent Phil Nordella was a guest on “The Senior Hour” radio show and discussed what happened to Real Estate during the pandemic.

Nordella shared that during the coronavirus pandemic, real estate agents thought the selling and buying of homes would stop. Real Estate was then deemed an essential service and they let them continue to sell. Interest rates dropped to virtually nothing. Nordella said this was one business that benefited from the pandemic.

“Since the coronavirus pandemic made interest rates go down, it brought every single buyer out of the woodwork. Since then, we’ve been ridiculously crazy when it comes to the sellers,” Nordella said. “The sellers have been making more and more money and we’re seeing 20 to 30 offers on a property, to over $150,000 over asking.”

When something like that happens, Nordella says you have to waive the appraisal. An appraisal is an expert estimate on the value of something. Waiving the appraisal gives the home buyers an option to decline having an appraisal done. The seller should no longer care what the appraisal comes out to be if they are being offered that much over the asking price.

Related Article: Santa Clarita Realtor Phil Nordella Knows The Realty Process Inside And Out

The buyer must have enough money in the bank over what the appraised value comes in at. This is because a lender will require the difference of the listed price and offered price to be paid for in cash. The lender must require the buyer to show them how much money they have in the bank if they are offering that much over the asking price.

“If you’re putting ten percent down on a $650,000 house, and if you add the other $75,000, now you’re looking at $130,000 in cash that you have to put down. So the good news is, sellers are killing it which means lenders are doing great, which means all the ancillary services are doing great,” Nordella said.

Phil Nordella began selling Real Estate 28 years ago in the Santa Clarita Valley. Nordella said the average asking price was $275,000. It has increased to over $700,000 in the Santa Clarita Valley.

For more information about Phil Nordella and to get in touch with him, visit his website: http://philnordella.com

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