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What's the current trend of your local market? Are home values appreciating or declining?
Current number of sales is up quite a bit. Prices are steady to slightly increasing.
Inventory in our price range is about 8 months.
Comps to our house are virtually non-existent, though. This means any appraisal will be a crap-shoot based on which "comps" the appraiser chooses and how the numerous adjustments are calculated.
That is why we want to stick to our last offer, pay 1/2 the appraisal costs, and see what happens. Without an appraisal, neither buyer nor seller not either agent really knows what price is best.
Your first offer is often your BEST offer. Remember lots of peeps out there with NO offer!! I would refuse to pay the closing costs and try to seal the deal somehow>>someway. Good luck
We had the same problem when we sold...in terms of appraising. We actually had a very smart agent the second time around (the first who had the listing for 3 months was an idiot) She suggested that we get an appraisal when she took over the listing. We got the appraisal and used it as part of our marketing strategy. This way we had it in hand when we had serious buyers and it took the guessing out of it. If this falls through, you may want to do the same thing so you know what to do next time. I think it cost us $400 but it was well spent. (Especially b/c we got it and it said it was worth $325 and we listed UNDER at $306 or something like that. It showed it was a good deal) I hate to say we accepted way lower than that, but we had to move as hubby was in another state and we just wanted the 8 month ordeal over with!
Once again Guy, I hope this works out in a way that you desire!
I do have a question from the real estate folks though. What happens if GF and the buyer agree on $345k and an appraisal is done and comes in at, say, $290k. Are all bets off at that point unless GF decides to lower to that price?
If that is indeed the case, can a seller get an appraisal before they put their house up for sale so they know they won't get stung by such a thing if they agree on a price with a buyer? Why don't sellers have their properties appraised ahead of time so avoid something like this happening? Is an appraisal expensive?
I truly don't know the answers to the above having never been a seller or buyer. I'm just curious.
Once again Guy, I hope this works out in a way that you desire!
I do have a question from the real estate folks though. What happens if GF and the buyer agree on $345k and an appraisal is done and comes in at, say, $290k. Are all bets off at that point unless GF decides to lower to that price?
Two options: the buyer can make up the difference in cash or the seller can come down. If neither or anything in between, the deal is off.
If that is indeed the case, can a seller get an appraisal before they put their house up for sale so they know they won't get stung by such a thing if they agree on a price with a buyer? Why don't sellers have their properties appraised ahead of time so avoid something like this happening? Is an appraisal expensive?
An appraisal is $400 to $500, but as I mentioned before, no two appraisals are the same. I could get an appraisal for $350K and we agree on $345K, but then the buyer's bank willa sk for THEIR appraisal. If it comes in at $300K, then it is the only one that matters. So a seller getting an appraisal ahead of time can be a general yardstick at best. Is it worth $400? My agent said no, not in this market where appraisals vary so widely.
I truly don't know the answers to the above having never been a seller or buyer. I'm just curious.
Once again Guy, I hope this works out in a way that you desire!
I do have a question from the real estate folks though. What happens if GF and the buyer agree on $345k and an appraisal is done and comes in at, say, $290k. Are all bets off at that point unless GF decides to lower to that price?
If that is indeed the case, can a seller get an appraisal before they put their house up for sale so they know they won't get stung by such a thing if they agree on a price with a buyer? Why don't sellers have their properties appraised ahead of time so avoid something like this happening? Is an appraisal expensive?
I truly don't know the answers to the above having never been a seller or buyer. I'm just curious.
1. An appraisal is just one person's opinion of value, on a given day. It can change by the time there is a contract, or another licensed appraiser may have a divergent opinion. So an appraisal at time of listing may not nail down the sales price.
2. The contract defines the next step when appraisals are lower than contract price. Here, a buyer can unilaterally terminate whether the seller will sell at appraised price or not.
...2. The contract defines the next step when appraisals are lower than contract price. Here, a buyer can unilaterally terminate whether the seller will sell at appraised price or not.
Same here where Guy is located, buyer can terminate without negotiating within 5 days of getting notice of the appraised value if lower than contract price. Usually though, both parties try to reach an agreement first.
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