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I feel like I walked into the middle of a movie and don't quite grasp the plot.
Best case scenario this seller gets his price.
Worst case, nothing lost.
Next buyer may need to finance and an appraisal will be required and seller will have no input into the parameters.
I think you need to keep in mind, this is an attorney wanting to buy the property. He wants a low ball appraisal so he can make a low ball offer. He is the one hiring the appraiser.
Last edited by gray horse; 07-01-2014 at 09:45 PM..
I don't like the word "paricipate" for one thing. That can mean "help pay for" or "listen to and review the outcome and sell accordingly". Participate indicates friendliness toward something, desire to work with something and someone.
Also, the mention of bankruptcy. Hmmm. Sounds like a scare tactic.
Also statement about how skewed professional appraisals are...and therefore not saying much about appraisors...don't know how much he really values an appraisal.
However, I can understand someone with no knowledge of a farm and of prices in a particular area wanting to be careful with his offer just for his own info.
FYI, I have had home inspections done on homes that are listed "as is" just for my own information so I know what I'm getting into at times. However, it's often been an inspection of a certain area and not a whole house....say the wiring or the foundation.
Thanks all...it was an easy decision on my email back...just needed some reassurance from the great team here.
Hi XXX and wife
Thank you for your email. Iexpressed before to "wife" an appraisal will have no influence on my price, asthey are subjective…especially on farm / horse property.
I am firm on my price, so Ithink you and "wife" need to decide what the property is worth to you.
Last winter, 2013, it was inescrow w/ a Realtor for herself @ $925K, so she felt it was a fair value. Sincethen the market has improved. I had 3 showings last week. The place is listed @$949K on the MLS and I have agents bringing their clients at that price. TheFSBO offers you a reduced price.
I have another very interestedcash party. I would be happy to have you appraise the place at your cost afterthe property is under contract, but I will not be accepting an offer based onit being appraised at such and such value.]Give it some thought. I wouldlove to make the place work for you guys.
That is an awesome letter. Well done. Please let us know what his response is.
I think you need to keep in mind, this is an attorney wanting to buy the property. He wants a low ball appraisal so he can make a low ball offer. He is the one hiring the appraiser.
I read what the attorney said and thought the term "participation" meant you allowing the appraiser to enter the home, nothing more than that except a bunch of legalize meant to intimidate you.
Personally, I would have reiterated that the price was non negotiable and agreed to the appraisal. I see nothing to lose in that. If the appraisal cones back low and he wants to negotiate down, simply say no thank you. And move on. If it comes back at list or higher, you're done and it's sold.
He's a lawyer and he's going to be a PITA. That's a given. Telling him no appraisal makes it sound like you know it won't appraise.
I do hope you have another cash buyer in your back pocket because I predict this one is gone.
I read what the attorney said and thought the term "participation" meant you allowing the appraiser to enter the home, nothing more than that except a bunch of legalize meant to intimidate you.
Personally, I would have reiterated that the price was non negotiable and agreed to the appraisal. I see nothing to lose in that. If the appraisal cones back low and he wants to negotiate down, simply say no thank you. And move on. If it comes back at list or higher, you're done and it's sold.
He's a lawyer and he's going to be a PITA. That's a given. Telling him no appraisal makes it sound like you know it won't appraise.
I do hope you have another cash buyer in your back pocket because I predict this one is gone.
I did give them the right to appraise after they have the property under contract, just not as a contingency of the sale. If they are serious, they can make an offer at my full price and do inspections and get an appraisal while it's in escrow. They can obviously get out of the deal during the inspection time period for any reason their inspector finds, as it's an as-is sale. I'm fine with them getting inspections.
I have no interest in a party that is going to use an appraiser to make their offer, when they have been told the price is firm. We all know how subjective and skewed the appraised price can be by an appraiser representing the interests of a private party. To me that is starting off the deal on a negative note.
These folks have been inquiring about the property for probably 6 months, saying it wasn't in their budget, first they only have $750K to spend, then it became $850K. As a courtesy I send them links to other similar properties, mine is by far the best value...the next closest thing with large acreage is over $250K more.
I don't know if you specialize in horse farms, but they are very difficult to come up with comps on. Most appraisers will give the same value to a 10 stall horse barn that was built in 2014 as a barn built in 1960. So, no most of them don't appraise, and I have already discussed this on several occasions with this party. My improvements are very high end, and appreciated by horse people but the appraiser doesn't always recognize these level of quality because they are not equestrians.
The other cash party is not an attorney. and they have an agent who understands horse property.
Last edited by gray horse; 07-02-2014 at 02:52 PM..
I think you need to keep in mind, this is an attorney wanting to buy the property. He wants a low ball appraisal so he can make a low ball offer. He is the one hiring the appraiser.
I understand.
And perhaps if it appraises at your ask, he will pay it.
I don't see a down side here provided you have no intention of agreeing to a price lower than your asking.
Of course.
I would let him appraise, as long as I received a full copy of the appraisal.
OTOH, if there is another buyer, why even bother to dance with this guy anyway?
Thanks Mike, my thoughts as well. The agent of the other party called at 7:00 this morning, she is on things so hopefully an offer will come in soon. I will have a better idea tomorrow whether I need to even deal with the attorney who's wife really does want the place.
I feel like I walked into the middle of a movie and don't quite grasp the plot.
Best case scenario this seller gets his price.
Worst case, nothing lost.
Next buyer may need to finance and an appraisal will be required and seller will have no input into the parameters.
I like this. But I'll kick it up a notch.
Say, "Sure, I'll let you appraise my house without a contract, but I want it in writing that you will supply me with a copy of the appraisal whether or not we make a deal."
Noting also, buyer is out the cost of appraisal so he has skin in the game without really being in the game.
Quote:
Originally Posted by gray horse
I think you need to keep in mind, this is an attorney wanting to buy the property. He wants a low ball appraisal so he can make a low ball offer. He is the one hiring the appraiser.
Anybody can make any offer they like, and any seller can laugh at it. In an all cash deal an appraisal means nothing unless stated as a contingency in a purchase contract.
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And here is another thought. Does an appraiser actually need to enter a house to appraise it? All my appraisals look like they were based on comps. Add for this, subtract for that. Thinking back on it, I can't recall a single detail that would have necessitated the appraiser being on the property. Maybe room measurements? But the comps were based on number of rooms, square footage, etc.
Do you even need anybody's permission to have a records search appraisal on their property? Even if it's not for sale.
Last edited by Lovehound; 07-02-2014 at 04:08 PM..
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and they have an agent who understands horse property. 
