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We've had our home on the market for 9 months and finally got an offer last week - lowball so we countered and the buyer agreed contingent on it appraising at the agreed upon price.
They buyer's agent got an appraisel from someone outside the area, unfamiliar with the area using comps that really weren't accurate. My realtor is furious as the appraisel didn't come in at the price we needed whereas my realtor said if the buyer's agent had used any of the appraisers that everyone uses in our area we would have been OK. Now, the buyers seem to want our house - they've made four visits and the kids have picked their rooms - so should we play chicken and hold out? The difference in price is about $10K. The buyers are %100 cash buyers whereas the $10k really makes a difference to us. My realtor says she will try to get them to agree to another appraisel. We really need to sell - we are paying two mortgages and we are almost in trouble financially. This message has been edited. Last edited by: calelettus, |
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What is the price of the house?
-------------------------------- Chance favors the prepared mind. -- Louis Pasteur -- |
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We were asking $330K. They offered $300K. We agreed on our counter offer of $315 and the appraisel came in at $305. The problem is we owe $330K. We had some emergency major medical bills last year and took a home equity loan to pay the bills. We can pay the $35k or so needed at closing but it will pretty much clean us out.
This message has been edited. Last edited by: calelettus, |
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Perhaps you could offer to pay for the cost of getting the appraisal done again -- either in part or in whole since getting it to match up with the purchase price affects you (negatively) far more than it affects the buyer.
That is, unless they will see the light on their own with the facts you've relayed to us (out of town appraiser, wrong comps, etc.). As 100% cash buyers, they aren't depending on getting a loan so, in that respect, they don't need an appraisal. |
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Just so you can see the oppostie side......
Do not assume that the $10k means more to you than them just because it is a cash deal. That amount of money means a lot to just about everyone. You have no idea where the money came from or much there is... and it is none of your business. As a buyer they do not care what you owe on the house as long as the title is free and clear at closing. If you paid for another appraisal, if I was the buyer I would not accept your figures over the person I hired. Why would I? I would trust who I hired unless there were fallacies pointed out to me. It would probably end up to be a figure some where in between and you would have the addtional expense of an appraisal. Right now it is still the buyers call. They can ignore the apprisal and go thru with the deal or they can withdraw their offer. If they withdraw you have to decide if you can accept the 10k less or make another counter or wait for another buyer. |
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I think my previous statement that led to the above response was misconstrued. I agree that $10k isn't going to easily be handed over by a cash buyer simply because they are a cash buyer. The point of my previous statement was that the buyer isn't going to be negatively affected by sticking with the first appraisal. In fact, it behooves them to insist on staying with it. The only party negatively affected by the first appraisal is the seller. It is also true that the buyer isn't going to want a second, higher appraisal to be done no matter who pays for it. However, if they are at all vested in this house (emotionally have made it "their" house already), they are more likely to listen to logic as to why the first appraisal is flawed than not. Chances are, when all is said and done, the price won't be $315 or $305, but somewhere in between. |
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That's kinda my thinking. I was going to offer to split the difference.
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Using a Realtor outside the area can be a problem.
If they are working for the buyer, some appraisers I have known choose all lower comps rather than higher comps of like kind. Some appraisers just do not search further and use what they find. Whichever, they need to be called on the carpet...and questioned. You can call for a review of the appraisal. Appraisers are licensed by the state. Is the appraiser from your state? Another option, I believe there is a $5,000 spread for adjustment,without having the to re-do the appraisal using higher comps of like kind(this is what I would go for), if they are available, or order another aprrasial through another appraiser. Check the auto spread adj. out for sure in your state. Your Realtor needs to get on the phone with this appraiser, and have the comps that he should have used handy. If you say you are going to call for a review, he may do the $5,000 auto adjustment. I am talking from experience in my state - again not sure this will apply to your state. If you really need the $10,000 and feel that your home is worth $10,000 more than the appraisal, providing the comps are there to substantiate,have your Realtor to go for the review, providing comps. I have been through this, and it can be successful. The key is if there are higher comps of like kind, and they were not used. Get your Realtor on this. This message has been edited. Last edited by: real estate lady, |
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Jewel-Metwo was talking to the OP not you about the 10K. |
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Perhaps. If she wasn't, I still wanted to clarify my statements for other readers.
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Whoa, sellers think that because you're paying cash you'd be willing to pay more, or shouldn't be as concerned about price?
I wish you the best of luck with your sale, calelettus, but I hope you'll reconsider that bit. That's real, genuine, honest to goodness, hard-earned, green money they're forking over. |
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Where did you get that impression? |
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I thought that's what the OP implied by this:
If I mistook her, I retract my 'whoa'. |
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I posted a more in-depth analysis but it was grabbed by Administration for no apparent reason.
My advice, they WANT your home and are planning to pay cash so the appraisal is irrelevant. Stick to the price you agreed on. Worst case scenario, you sell to someone else for XXX discount. BEST CASE scenario, they decide to buy at the price all agreed upon before the out-of-area appraiser entered the picture. Bottom line, you don't want to lose a cash Buyer who really wants to buy your house; so you might consider meeting them somewhere in the middle where both are happy/unhappy, it's called FMV! Good luck; let us know how it turns out.... This message has been edited. Last edited by: Idaho Resident, |
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Calel: if your agent has comps for similar homes sold or for sale in your area, how do they compare?
Their offer or how much you hope your home sells for is irrevelant on this board because only you & your agent are familiar with your neighborhood. What seems nutz, is that you are are willing to accept an independent out of area appraisers estimate of value. Surely you can get an appaisal from your bank or mortgage company as if you were refinancing or buying |
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Wake up and smell the coffee, girlfriend!!! The economy suks and especially the 'housing market'. Your house was on the market for 9 l-o-n-g months..... I don't know where you live, but we are going into WINTER now. It was cold this a.m. (49 deg) I think there are less house hunters in general in colder months and when school has already 'begun'.
I would take that offer and don't look back. How much would it cost you if you lose that 'offer' and THEN have you house on the market for another 6 months? Are you waiting until you have to go into "Foreclosure". It's a good enough offer, and you may lose those buyers and not get any others for another 5, 6 or 8 months...... If you can't be kind, be quiet! |
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My suggestion is to have another appraisal and meet in the middle. Before you do anything consider the following houses are sitting on the market for 6+months. You and your buyer are less than 10% apart. If your buyers were financing, chances are they would be asking for seller concessions in addition to expecting you to lower the price. As a buyer, I certainly would not pay more than a house appraised for, especially in this declining market. The buyer is not looking at his appraiser in the same light as you are. This message has been edited. Last edited by: LAKELARK, |
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They can split the difference now through negotiations, without the cost of a new appraisal. Buyer just pays 5% more on the "cash" sales price, if the buyer is willing.
This message has been edited. Last edited by: real estate lady, |
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I think they need to ask themselves where they'd be if this buyer walks and another doesn't appear soon.
A bird in the hand... Sell and be done with it. |
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I suggested the 2nd appraisal to give them a firmer footing for negotiating the price difference--if any. But, I really agree with others who suggest sell and move on. This message has been edited. Last edited by: LAKELARK, |
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true, and if they do order up a 2nd appraisal may come in ten higher... but will the buyer pay..maybe half? Who knows.
That's why I thought maybe splitting the difference might be better now. More time that goes by -- buyer could lose interest. Just my opinion. (I meant $5,000 not 5% I put by mistake in former post. Sorry) This message has been edited. Last edited by: real estate lady, |
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Any updates, calelettus?
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No change. Their realtor has said no to another appraisal and he also says the buyer will walk.
For us it is either take it or leave it. Most are saying take it and cur your losses. I think wew probably will do that. Ouch. |
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Not suprised about the buyer not wanting a 2nd appraisal.
Am sorry it did not work out as well as you hoped. Since you mentioned you are paying two mortgages does that mean you have already moved? |
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Calelettus, We moved to Louisiana from Newburgh, NY. We were a cash buyer, looked at lots of homes, made a bid, met in the middle. Had the appraisal been less than agreed price we would have backed out of the deal. There are lots of houses for sale. I think if you have a firm offer, take it... In this economy you may not get another one for a while. As hard as that is, waht is the saying " A bird in the hand..." Best of luck to you, sending you good wishes
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