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Old 03-18-2021, 05:42 AM
 
Location: Wonderland
67,650 posts, read 60,944,294 times
Reputation: 101088

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My house is under contract at full list price and I'm just wondering how appraisals are coming in, in various areas. I have done a TON of cosmetic work (not maintenance - additions) since I bought the house and I am still taking a slight loss (didn't do these renovations for resale - long story). The house is under contract and it's a chunk above what I bought the house for a year and a half ago. But this is a seller's market and I got three offers in just a few days. All were at or above full list price. Hmmm. Wondering if anyone else has had appraisal experience recently.

I live in Tyler, TX.
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Old 03-18-2021, 08:26 PM
 
7,473 posts, read 4,017,691 times
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Quote:
Originally Posted by KathrynAragon View Post
My house is under contract at full list price and I'm just wondering how appraisals are coming in, in various areas. I have done a TON of cosmetic work (not maintenance - additions) since I bought the house and I am still taking a slight loss (didn't do these renovations for resale - long story). The house is under contract and it's a chunk above what I bought the house for a year and a half ago. But this is a seller's market and I got three offers in just a few days. All were at or above full list price. Hmmm. Wondering if anyone else has had appraisal experience recently.

I live in Tyler, TX.
I'm looking at buying in Conroe area........scary prices in Texas...
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Old 03-19-2021, 12:01 AM
 
7,132 posts, read 4,540,768 times
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If it doesn’t appraise and the buyer doesn’t have the money to make up the difference or doesn’t want to your choices are to lower the price or lose the sale. This is occurring where we live because prices are increasing so fast. Locally some sellers are only accepting offers that commit to paying the difference if the property doesn’t appraise.
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Old 03-19-2021, 05:34 PM
 
7,473 posts, read 4,017,691 times
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Quote:
Originally Posted by Teacher Terry View Post
If it doesn’t appraise and the buyer doesn’t have the money to make up the difference or doesn’t want to your choices are to lower the price or lose the sale. This is occurring where we live because prices are increasing so fast. Locally some sellers are only accepting offers that commit to paying the difference if the property doesn’t appraise.
Which is a very depressing situation because I'm basically forced to move to the conroe area. Talked to a realtor today and she said if really want a home I would probably be in a bidding war..........
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Old 03-19-2021, 06:41 PM
 
Location: Austin, TX via San Antonio, TX
9,852 posts, read 13,701,644 times
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In the Austin forum, a lot of people are reporting that offers have to waive appraisals so the buyer is SOL no matter what.
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Old 03-20-2021, 05:17 AM
 
Location: DFW
40,951 posts, read 49,198,692 times
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Prices are high here and that's just the starting point of offers that come in 5-10% over the list price. Usually multiple offers.

Homes are not appraising but we are using a TX form: Addendum Concerning Right to Terminate Due to Lender's Appraisal
I'm requiring Buyers to do option 1 if there are multiple offers and they want the house. This waives their right to terminate if the appraisal is low.

Download the form:
https://www.trec.texas.gov/forms/add...rs-appraisal-0

I just made an offer of $820 on a home listed for $795 that sold 2 years ago for $635. Very good odds it will not appraise and I had a frank discussion with my Buyers on what that means. But that is our market today.

Katheryn, stick to your guns if it does not appraise and make them come up with the difference. I wish you had a Realtor that would have used the Appraisal Form or had a discussion with you and the Buyers agent about your expectations.

My philosophy, if you can't cover the money don't make the offer.
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Old 03-20-2021, 10:01 AM
 
Location: Austin, TX via San Antonio, TX
9,852 posts, read 13,701,644 times
Reputation: 5702
Quote:
Originally Posted by Rakin View Post
Prices are high here and that's just the starting point of offers that come in 5-10% over the list price. Usually multiple offers.

Homes are not appraising but we are using a TX form: Addendum Concerning Right to Terminate Due to Lender's Appraisal
I'm requiring Buyers to do option 1 if there are multiple offers and they want the house. This waives their right to terminate if the appraisal is low.

Download the form:
https://www.trec.texas.gov/forms/add...rs-appraisal-0

I just made an offer of $820 on a home listed for $795 that sold 2 years ago for $635. Very good odds it will not appraise and I had a frank discussion with my Buyers on what that means. But that is our market today.

Katheryn, stick to your guns if it does not appraise and make them come up with the difference. I wish you had a Realtor that would have used the Appraisal Form or had a discussion with you and the Buyers agent about your expectations.

My philosophy, if you can't cover the money don't make the offer.
Thank you so much for posting this. My family is actively looking in the area between San Marcos and south Austin and are at a loss as to how to even be competitive in this market. I basically want to write a letter begging and pleading for the right house.
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Old 03-20-2021, 10:03 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,724 posts, read 58,067,115 times
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No buyer concessions needed in this market. Plenty more buyers in the queue. My buyers must meet agreed sales contract price or I walk away with their deposit. That includes inspection. My buyers are free to inspect, and they get to walk if they don't like the inspection. I only repair safety related issues. (At my discretion). Have a robust list of walk clauses whether you are a buyer or seller. Real estate is too expensive to get stuck with.

Buyers are plentiful, and many have cash, lots of cash.
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Old 03-20-2021, 10:28 AM
 
Location: DFW
40,951 posts, read 49,198,692 times
Reputation: 55008
Quote:
Originally Posted by ashbeeigh View Post
Thank you so much for posting this. My family is actively looking in the area between San Marcos and south Austin and are at a loss as to how to even be competitive in this market. I basically want to write a letter begging and pleading for the right house.
Normally the market tends to slow in the heat of the summer.

But these are not normal times so I don't know if this year that will happen.
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Old 03-20-2021, 10:29 AM
 
Location: Austin, TX via San Antonio, TX
9,852 posts, read 13,701,644 times
Reputation: 5702
Quote:
Originally Posted by StealthRabbit View Post
No buyer concessions needed in this market. Plenty more buyers in the queue. My buyers must meet agreed sales contract price or I walk away with their deposit. That includes inspection. My buyers are free to inspect, and they get to walk if they don't like the inspection. I only repair safety related issues. (At my discretion). Have a robust list of walk clauses whether you are a buyer or seller. Real estate is too expensive to get stuck with.

Buyers are plentiful, and many have cash, lots of cash.

This is the problem. It pushes out a regular buyer who may have a solid down payment, a good credit score, and are generally good homeowners. If I were to be in a financial space to purchase I probably would be pushed out of the market quickly because I'm an average buyer. (paying down credit cards, student loans, car payment, etc) My parents, who have been saving for years to put 30-40% down are stuck in the multiple offer world because people from out of state are buying houses sight unseen.
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