U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Oregon > Portland
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 02-28-2012, 05:05 PM
 
31 posts, read 92,645 times
Reputation: 36

Advertisements

I am in a contract of buying a new house. I got the appraisal report today and it seems the square footage is 9% smaller than the builder’s advertised square footage. However, the house value on the report equals to the price I offer. In the purchase agreement, it says:

“Home/lot Square Footage: The Home and Lot square footage may differ from the square footage of model homes or those values shown on advertising brochures. These values are based on good faith estimates. Minor variation in size may occur between homes of the same floor plan. Buyer waives any claims relating to variations in the size of the Residence or lot which do not exceed five percent (5%) of the total square feet.”

Now it is 9% smaller. Can I still ask for a price reduction? What is the best strategy to do that?

Thank you!
Reply With Quote Quick reply to this message

 
Old 02-28-2012, 05:57 PM
 
Location: Portland, Oregon
7,024 posts, read 7,897,853 times
Reputation: 3015
I don't think 9% is minor, by their own contract language you aren't "under contract". They can't say 'yes' to a price reduction unless you ask. FYI I would not show them the appraisal.

The best negotiation position is the willingness to walk and your willingness to walk is their greatest fear. If they want to hold their own market value up perhaps you can negotiate for upgrades or better terms.
Reply With Quote Quick reply to this message
 
Old 02-28-2012, 08:10 PM
 
Location: SE Portland, OR
1,167 posts, read 1,301,348 times
Reputation: 597
Have your gown out with your Realtor and measured it yourself? Or did you have a home inspection done?
I would double check the measurements before further action.
Was it a case of them counting a partial basement as livable space, or such? That can definitely be a problem when buying a home.
Reply With Quote Quick reply to this message
 
Old 02-28-2012, 09:31 PM
 
Location: Rockaway Beach, Oregon
381 posts, read 475,165 times
Reputation: 187
Definitely double-measure the beast, but definitely use it in negotiation. There;s no reason for you to get shafted by a seller, even over a 9% misstatement in size.
Reply With Quote Quick reply to this message
 
Old 02-28-2012, 09:55 PM
 
Location: Portland, Oregon
7,024 posts, read 7,897,853 times
Reputation: 3015
I am the wife of a retired architect so there is no denying I have an 'attitude'. A label I wear proudly in many areas. I would NEVER buy a spec built house. If I didn't build it and oversee its construction I would buy a house old enough to show its imperfections. BUT the OP had decided to buy a new house so I will go with his decision.

A qualified buyer is a precious commodity for a builder. Keep that in mind. Tell the builder that the appraiser came up with different square footage and see what s/he says.

First you should have a home INSPECTION, not just an appraisal. Builders will puff their chests and proudly state that it complies with the building code. Keep in mind that code is the MINIMUM standard and it by no means says that it was well built. Find the most anal retentive inspector you can find, even hire an architect (many are very short of work right now, hire a middle aged one by the hour because they have been around several construction cycles). I know this sound like a lot of un-necessary expense but buying a home is serious business, you need to have as much information as possible. The contractor will not like this but remember you are in the cat bird seat. If they don't want you to bring your team to the table they are afraid of something.

After you have heard your team's critique then decide what to do.
Reply With Quote Quick reply to this message
 
Old 02-28-2012, 11:34 PM
 
31 posts, read 92,645 times
Reputation: 36
Actually I have finished the home inspection and now I am in the stage of finalizing the loan. The appraiser came to see the property for lending purpose. I measured the house myself pretty early before the home inspection. The number was short but not that extreme. I don’t know if I can trust my own measuring skill. I thought the appraiser is more professional. They probably don’t make mistakes, right? I will definitely negotiate the price down but in the meanwhile I am thinking about hiring a professional to measure the house again.
Reply With Quote Quick reply to this message
 
Old 02-29-2012, 12:02 AM
 
Location: Rockaway Beach, Oregon
381 posts, read 475,165 times
Reputation: 187
What Nell was also getting at is not just for measurement, but also to check for defects, potential design and construction goofs that would cause future problems, and things like that.

For instance? If the place has two bathtubs and a shower, but only a 20-gallon hot water tank, someone is going to get chilly. If the electrical panel is completely full (with no empty slots) and/or only distributes a maximum of 200 amps, you're going to have a tough time putting a hot tub in later on. If you have a crawlspace that hadn't been sealed properly, then say hello to dry rot and mold in the floor joists 5 years down the road. No zinc strip (or similar anti-moss measures) on the roof? Better get used to climbing a ladder to sprinkle anti-moss powder on the shingles once a year.

I promise you that I'm no expert, but I got to experience all of those in the past out here.
Reply With Quote Quick reply to this message
 
Old 02-29-2012, 12:30 AM
 
Location: SE Portland, OR
1,167 posts, read 1,301,348 times
Reputation: 597
Quote:
Originally Posted by formosa View Post
Actually I have finished the home inspection and now I am in the stage of finalizing the loan. The appraiser came to see the property for lending purpose. I measured the house myself pretty early before the home inspection. The number was short but not that extreme. I don’t know if I can trust my own measuring skill. I thought the appraiser is more professional. They probably don’t make mistakes, right? I will definitely negotiate the price down but in the meanwhile I am thinking about hiring a professional to measure the house again.
And what did the appraiser say? Are they willing to give you the loan based on their measurements (as in do they think it's a fair price for their measured size)? If you're still getting a good deal based on their measurements (and everything checks out with a home inspection), then I would just continue on. I guess you could use it for bargaining leverage, if you felt like you still wanted a discount. But do the actual measurements change how the house feels/looks to you? They're just numbers.
Reply With Quote Quick reply to this message
 
Old 02-29-2012, 02:03 AM
 
31 posts, read 92,645 times
Reputation: 36
Quote:
Originally Posted by Random_Walk View Post
What Nell was also getting at is not just for measurement, but also to check for defects, potential design and construction goofs that would cause future problems, and things like that.

For instance? If the place has two bathtubs and a shower, but only a 20-gallon hot water tank, someone is going to get chilly. If the electrical panel is completely full (with no empty slots) and/or only distributes a maximum of 200 amps, you're going to have a tough time putting a hot tub in later on. If you have a crawlspace that hadn't been sealed properly, then say hello to dry rot and mold in the floor joists 5 years down the road. No zinc strip (or similar anti-moss measures) on the roof? Better get used to climbing a ladder to sprinkle anti-moss powder on the shingles once a year.

I promise you that I'm no expert, but I got to experience all of those in the past out here.
I got a good inspector who checked the property very closely. There are something need to be fixed but not major. They are all fixable. The builder will fix all the problems before the walk through day. I will also do a re-inspection to confirm the problems are solved. I also did sewer scope and radon. All turned out good. Now my only concern is the size of the house. I worry that I will overpay for the square footage and never get the money back.
Reply With Quote Quick reply to this message
 
Old 02-29-2012, 02:10 AM
 
31 posts, read 92,645 times
Reputation: 36
Quote:
Originally Posted by davemess10 View Post
And what did the appraiser say? Are they willing to give you the loan based on their measurements (as in do they think it's a fair price for their measured size)? If you're still getting a good deal based on their measurements (and everything checks out with a home inspection), then I would just continue on. I guess you could use it for bargaining leverage, if you felt like you still wanted a discount. But do the actual measurements change how the house feels/looks to you? They're just numbers.
I can still get a loan since the appraised price is equal to my purchase price. However, the appraisal just confirmed my suspicion. The house is indeed smaller than the advertised size. I thought I got a good deal but now the size shrunk and I am just paying the fair market price. I have to say the report did change my feeling of the house.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2011 data
Loading data...

123
Hide US histogram


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Oregon > Portland

All times are GMT -6.

© 2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top