Real Estate Issue (Sarasota, Englewood: sales, rental, condo)

[kiggy]

I need some feedback from some real estate professionals. I have a family member who has just come under agreement for a house in Englewood. She is now waiting on the appraisal to come in. If the appraisal falls short of the asking price, can she put in extra money to make up the difference? She is going with a local bank on a house around $100,000. What are her options if it doesn't appraise to the asking price? Thanks in advance for all replies.

[bbronston]

Her options will depend on her contract and the wording of the contingencies. If she used the commonly used FARBAR form, there is a financing contingency but that doesn't necessarily apply if the property doesn't appraise. If they added the appraisal contingency addendum, then she would have negotiating power because she could tell the seller to lower the price or she will back out.

If it appraises low, she could still get the loan if she is willing to put more money down but then you have to ask why she would want to over pay for the property? Anyway, she should discuss the options with her agent and with her lender. They will be able to advise her on her best course of action.

[La-La land]

Appraisals have a way of miraculously coming in at the contract price. I don't think they want to rock the boat unless the property is grossly over or under valued.

[Cardiff by the Sea]

Originally Posted by bbronston

Her options will depend on her contract and the wording of the contingencies. If she used the commonly used FARBAR form, there is a financing contingency but that doesn't necessarily apply if the property doesn't appraise. If they added the appraisal contingency addendum, then she would have negotiating power because she could tell the seller to lower the price or she will back out.

If it appraises low, she could still get the loan if she is willing to put more money down but then you have to ask why she would want to over pay for the property? Anyway, she should discuss the options with her agent and with her lender. They will be able to advise her on her best course of action.

Because you occasionally get an idiot appraiser. We sold 11 properties in CA in the six months prior to leaving CA. 8 of the properties were in 3 condo communities within 3 miles of each other. We had purchased them in 2010. We knew the market cause we were the market. We had an intimate understanding of the price relationships between the 3 complexes.

We accepted an offer from a federally sponsored government program buyer. They sent in an appraiser from out of the area. He would not accept any of the other sales in that zip code--only sales in that complex--and there had not been any in the complex in the prior 18 months. On a $200,000 unit he came in at $185,000. $200,000 may have been aggressive at that point, but it was worth $195,000 for sure. That dumb @#$ cost us $10,000.

Essentially, fair market value is what a willing buyer and a willing seller can agree to if neither is under any undue pressure.

We always do our own market analysis. And we don't accept the opinions of realtors. And we don't list with realtors who do not believe the property is worth what we believe it is worth. A realtor who does not believe in the price can't get that price. You realtors are probably thinking, "oh yeah, their properties get list too high and sit there until they come down." That has not been the case for us.

Example 1. Realtor said it wouldn't appraise for more than $62,000 because not around it had appraised for more than that. Another realtor said someone would pay $72,000 for it because they could get so much more for that price than they could get in town (it was a lake property). We got an offer for $72,000 and it appraised for $70,000.

Example 2. Realtor one wanted to list at $232,000 based on recent sales. We had sold an identical property for $240,000 exactly one year earlier. We listed at $242,000 with a different realtor and got $242,000.

Example 3. When we listed our LA condo, the realtor who sold it too us didn't think we could get over XXX. It was small square footage but totally tricked out. On a square foot basis, the realtor's XXX price was about $25,000 over market. We listed with a different realtor at $50,000 over market and got a cash offer for $75,000 more.

That offer fell out of escrow when the inspector discovered mold in an exterior wall from leaking windows above. That was a real bummer. But we fixed the mold and went back on the market a month later. We got another bunch of offers and picked a financed offer for $50,000 more than zillow said it was worth based on square footage and $25,000 more than agent #1 told us we could get.

We were worried the appraiser would screw us because he was out of the area. We got 11 offers in total with a difference of $75,000 from the lowest to the highest. Our realtor spread all 11 offers on the table when she met with the appraiser and he went with the price we had accept.

If your sister has done her research and believes it is worth that price then she should go for it.

Also, based our experience trying to buy rental property in Sarasota in the $125,000 price range in the last six months, I would say that absence of inventory has driven prices us $5,000-7,000 since December. We closed on 2 properties in January at market based prices. Market based prices are now losing to over market prices. When there is absolutely nothing out there that meets your criteria, you have to pay what it takes to get in or just not buy and hope something else comes along. We have had 3 market priced offers declined in the last 6 weeks which is pushing our offer prices up.

I am not trying to brag. Only trying to be helpful based on a whole lot of experience buying and selling. Appraisers and realtors have an opinion--and like noses, every one is different. And no matter what appraisers and realtors say, the only thing that really matter is what the buyer and seller agree on as long as the buyer can come up with the cash. This is especially true in a market with a high percentage of cash buyers like Sarasota. I am sorry if my comment offend any of the wonderful realtors who post on this board. I am sure that your opinions are always spot on.

[jean_ji]

Tell her to sit tight and see how it plays out.

Our house came in 10k under appraisal and we willing to negotiate a bit, but we were never given a chance. The sellers's realtor told our realtor that the owners were not selling at that price, they would rent it out instead etc. No mention or discussion of a counter offer and then a few hours later the realtor called back to say the sellers agreed to the appraisal price. All without having a two sided conversation. Emotional sellers and a realtor not advising their client well.

[Cardiff by the Sea]

Thank you to the two people who gave me rep points for my post in this thread. After I hit post, I regretted it because I thought I talked to much about me and it was too long and TMI. I was even thinking about drifting away from this forum because I talk to much. So thank you for helping me realize I am not making a fool of myself.

[macrodome2]

Originally Posted by bobbie jo newman

[/b]


By reading some of your past posts you do make yourself sound waaay too "Queen Bee-ish"...and you haven't lived very long whatsoever in Sarasota. The word "arrogant" comes to mind

Nice welcome by a new member.

[03bluecoupe]

Originally Posted by macrodome2

Nice welcome by a new member.

well, it is the time of year that school gets slow ya know

[Cardiff by the Sea]

Oh bobbie jo newman

My neighbor who works in human resources explained people like you to me. You were the guy I wouldn't date in high school and you just can't get over it. The resentment never dies. You are obsessed with saying women are queen bees and are entitled.

And FYI I still wouldn't date you cause you are still as pathetic now as you were then. It is really pathetic that you have nothing better to do. But oh yeah, women like gypsychic and I wouldn't date you then, so now that you are old and bitter, you've really got nothing going for you. Nothing to caress except your keyboard and nothing to do with your tongue except spew bile and hate. May I quote your favorite slam. "get a life".

Does this puncture your narcissistic arrogance any? Deflate your artificially puffed up bubble? Eagerly awaiting your next user name so I can use my speed-dial to the mods. I know I will get spanked for saying this, but it was soooo worth it.

And you can keep trolling me all you want. I take it as a badge of honor. Proves I am still the prom queen.

[LandsharkJB]

im sorry but you're such a hypocrite, just the other day you were spewing hate at a stranger you met in a theater, ripping her appearance on your home here and saying you wanted to staple her ugly duck lips together.

Me thinks she was the actual prom queen.