Paul Owers wrote a great piece about Florida buyers paying above appraised value for their dream homes

Ryan Williams had been house hunting, off and on, for two years. He finally found the perfect place in Pompano Beach, a four-bedroom home with a pool and a two-car garage. He ended up paying $490,000 — even though the appraisal came in at only $425,000.

Williams said he had no complaints bringing an extra $65,000 to the closing table on top of a $160,000 down payment.

“I still thought I got a good deal,” the 40-year-old biologist said. “I plan on staying in the house a long time — I’m telling everybody 20 years, at least. I’ll be OK in the long run.”

Historically, most homebuyers didn’t dare pay above appraised value, but that mindset is changing amid rising prices and increased competition for a scant supply of homes.

Ryan Paton, president of Capital Lending Group in Fort Lauderdale, said he personally wouldn’t pay more than about $10,000 over appraised value. But he understands why other people will.

Read more here

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