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Would you like to buy a house knowing you are already $9K down on equity? At least take it back to the seller for negotiation.
If the personal property is worth $10k, how would a buyer be "already $9k down in equity"? Add in the fact that appraisals are far from an exact science....
If the personal property is worth $10k, how would a buyer be "already $9k down in equity"? Add in the fact that appraisals are far from an exact science....
Personal property, as a general rule, goes down fairly fast in value. What will that TV and washer/dryer be worth in 5 years? Certainly not 10k or anything like it.
However, I do agree completely with your second sentence. Who knows, maybe she really isn't already down $9,000. (Or maybe she's down even more.) In any case, when you take that into consideration with whatever sales commission she will pay when she sells, she's already in a big hole. I still think she will be lucky to break even in 5 or even 10 years.
If the personal property is worth $10k, how would a buyer be "already $9k down in equity"? Add in the fact that appraisals are far from an exact science....
When does personal property in the house become equity? This is new to me. But it is true that appraisal is not exact science, far from it.
Woud it make any difference to the seller if I agreed to pay the appraisal price on the home - then paid him separately for the personal property?
As somone else posted, this would help me in terms of my real estate taxes and perhaps lower my monthly payment a bit and could help me long-term.
If the seller ended up with the same amount - does this somehow hurt him?
I have no idea as to the true value of the personal property. That home theatre system is built into the wall - but I guess he could tear it down and re-drywall. I looked on line and those systems range anywhere from $5000 to $50,000 including the projector systems, the speakers, etc. I could care less about it - but I think my 15 year old son feels differently!
So I could very well be getting $9000 in personal property. I just think it would be smart to split the two. The house; and the personal property. I was just wondering what objection the seller could have to this. Yes, he's getting less on the house but if I pay him separately for the personal property - what's the difference?
Woud it make any difference to the seller if I agreed to pay the appraisal price on the home - then paid him separately for the personal property?
As somone else posted, this would help me in terms of my real estate taxes and perhaps lower my monthly payment a bit and could help me long-term.
If the seller ended up with the same amount - does this somehow hurt him?
I have no idea as to the true value of the personal property. That home theatre system is built into the wall - but I guess he could tear it down and re-drywall. I looked on line and those systems range anywhere from $5000 to $50,000 including the projector systems, the speakers, etc. I could care less about it - but I think my 15 year old son feels differently!
So I could very well be getting $9000 in personal property. I just think it would be smart to split the two. The house; and the personal property. I was just wondering what objection the seller could have to this. Yes, he's getting less on the house but if I pay him separately for the personal property - what's the difference?
I think its a good idea to pay separately for the additional contents he has agreed to leave and go ahead and reduce the selling price to the appraisal price. Your taxes will be less, as you said.
I think its a good idea to pay separately for the additional contents he has agreed to leave and go ahead and reduce the selling price to the appraisal price. Your taxes will be less, as you said.
And my monthly payments - which will help me in the long run. Thanks guys, this was a great idea!
...
I have no idea as to the true value of the personal property. That home theatre system is built into the wall - but I guess he could tear it down and re-drywall. I looked on line and those systems range anywhere from $5000 to $50,000 including the projector systems, the speakers, etc. I could care less about it - but I think my 15 year old son feels differently!
So I could very well be getting $9000 in personal property. ...
As noted before, appliances/electronics depreciate in value quickly. How old are they? If more than 3-5yrs, then value is probably close to zero. You should check the brands/models and find out current selling price if they are still being sold, or ask a home theater expert. Otherwise, the idea of paying separately is good, but value may not be enough to make up the difference.
As noted before, appliances/electronics depreciate in value quickly. How old are they? If more than 3-5yrs, then value is probably close to zero. You should check the brands/models and find out current selling price if they are still being sold, or ask a home theater expert. Otherwise, the idea of paying separately is good, but value may not be enough to make up the difference.
Yep, I hope buyer does not plan to give $9K in cash to seller for not-new electronics.
Hard truth is that seller cannot get its money back for every upgrade he did.
That should be covered in your contract. Have you read it? Talk to your agent.
Quote:
Originally Posted by Ringo1
So. Found a house I love and that will accomodate my teen-age son AND my 88 year old father who we are taking with us. First floor master; home theatre system; rec room and three full baths. All within walking distance to my son's school and 10 minutes from my office.
Then the appraisal comes in - $9000 less than the price we had agreed upon.
What to do???
Here's something else to consider. I got a lot of 'extras'. Seller agreed to leave the brand new washer and dryer. Seller agreed to leave the home theatre system and projector (not much choice about this - it was built into the wall). Seller agreed to leave the 42 inch tv mounted on the great room wall. Seller agreed to leave the small bedroom tv also mounted on the wall with a swivel post. Seller agreed to live the HUGE mirror in the great room.
Do all these things make up for the $9000 difference in the appraisal? When I go to sell this house will I be taking a huge loss?
Crap.
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