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We put an offer on a house in Mooresville (28117) which had been on the market for about a month. Then it was appraised $10,000 lower than our offer. I'm very dubious about buying a house that is appraised lower especially if prices are falling. All reports I have read seem to indicate falling prices will continue for awhile (Charlotte Observer, April 3,2010).
Unfortunately the seller bought the house in 2008 and seems to be determined to make a profit. He's not willing to even go halfway.
We may have to walk but was hoping for some feedback.
I know for sure that my bank has in their stipulation that they would not finance if the appraisal was lower than the selling price. I would think that this is common or more prevalent practice.
From your OP I am not sure what you are asking but by the title if you are asking is it common for house prices to be dropping in that area the answer is yes. In fact don't expect any real estate here to appreciate at all unless there is something very unique about it that would keep it in demand.
If you are asking for advice to walk or not, I would say walk. It's not as if there are not a lot of sellers here that are very desperate to get rid of their places. You don't want to be dealing with a hobby seller.
I agree. If the house is appraising lower and the seller won't budget - let him stay in the house, lol. He is a fool b/c the price is only going to keep dropping for a while and the next person will get an even LOWER appraisal on the house. He needs to just suck it up and lower his price.
There is always another house, even tho I am sorry you found one you liked and it hasn't worked out.
Well I guess the major problem is the seller is a real estate agent; so this becomes more like a FSBO situation. He may be too emotionally attached to his house and his price to do a real negotiation.
The 'problem' is when you fall in love with a house. In this market you should absolutely walk if the seller won't accept your price - unless you really want the house and are willing to pay more than it is worth. You can always pay more for the home than the appraised value... it's just money out of your pocket.
We put an offer on a house in Mooresville (28117) which had been on the market for about a month. Then it was appraised $10,000 lower than our offer. I'm very dubious about buying a house that is appraised lower especially if prices are falling. All reports I have read seem to indicate falling prices will continue for awhile (Charlotte Observer, April 3,2010).
Unfortunately the seller bought the house in 2008 and seems to be determined to make a profit. He's not willing to even go halfway.
We may have to walk but was hoping for some feedback.
The market has busted and big prices paid 2 years ago do not mean a thing. You said he wants a profit? He isnt going to get it.
Appraisals are alot more conservative these days. If he bought in 2008 it would be odd to be able to sell it for more today. It would be faily easy to for me to do a comp and see if the price you are paying is a good deal for you or not.
well, except for the fact that "comps" are pretty useless in a declining market.
Well I guess the major problem is the seller is a real estate agent; so this becomes more like a FSBO situation. He may be too emotionally attached to his house and his price to do a real negotiation.
Even more reason for them to negotiate, since they won't have to pay 3% to the "selling" realtor...
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