What's a 22AD and How it Can Help Make Your Offer Stand Out

Learn about the benefits of using a 22AD clause in real estate contracts to make your offer more attractive as a buyer. 

Attention home buyers! The real estate market is heating up and standing out from the crowd is becoming increasingly important when making an offer on your dream home. Introducing the 22AD - this strategic move can rocket your offer to the top and blow the competition out of the water. Not familiar with a 22AD? Let's break it down. Essentially, it functions as an additional down payment. Your agent can incorporate a 22AD form into your contract, which serves as a clear signal to the seller that should the home appraise lower than anticipated, you, the buyer, are prepared to make up the difference. 

Typically, during the purchase process, the financing lender contracts an appraisal company to determine the home's value.

 The appraiser's aim is to validate the price point that you as the buyer have offered. However, if they're unable to do so, a 'low appraisal' conclusion is drawn. In such scenarios, the buyer is often asked to offer more cash, and the seller may lower the home price slightly, meeting somewhere in the middle. With the inclusion of a 22AD though, the seller is already aware that the buyer is willing to contribute additional cash if a low appraisal occurs. This proactive step can make your offer far more competitive.

If you expect the home you're vying for to attract numerous offers, including a 22AD could tip the scales in your favor.

 So, equip yourself with this knowledge, and enter the playing field with a competitive edge. If you have any queries or need further clarification about this approach, or any other aspect of your home purchase process, please feel free to reach out to me. I'm here to help, always! 

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