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We just sold as you know; multiple offers in 4 days. When that fell through, we went back up. 6 days later we received 4 offers on the same day. We have closed and moved.
Yes. I think they are only wanting to buy if they can steal it from us. As I told them “its not a good deal unless its a good deal for everyone in it.”
We had already lined up an agent and were seeking alternate housing when we contacted them about their rental house nearby as a place to rent. And when we told them where we live (a street known for killer views) they asked to come over and see our house.
We have been looking for a new house to buy for months and finally decided we should just sell the house and rent something until we find a place we like. So we have a pretty good handle on local price points. And, we were offering it to them well below what our (soon to be) listing agent suggested as a fair selling (not listing) price. We have a $35K difference between our agreed price and the price their agent (who hasn’t been in the house) provided them.
They are quite willing to enter into a written contract but only with the stipulation that we will honor the appraised price if it doesn’t meet the contract price. So, looks like this won’t work out. We are fine with it falling apart.
Does sound like this isn't going to work out.
This could well be somethings they've worked out with a mortgage company that typically does low ball appraisals.
Question to the real estate agents on this forum: Is stipulating that the appraisal price is the selling price a usual part of a real estate contract?
They don’t want to apply for a mortgage unless we guarantee we will adjust the price to the appraisal if the house doesn’t appraise to our agreement.
This type of language negates your leverage in the deal--I would not agree to it. I won't challenge you on your value expectations, but until you expose your property to the buyers in your market, you are stuck with the number you think is right--that can hurt your position as well.
This could well be somethings they've worked out with a mortgage company that typically does low ball appraisals.
Question to the real estate agents on this forum: Is stipulating that the appraisal price is the selling price a usual part of a real estate contract?
I've never seen that actually written into a contract but I've been party to deals where the seller told the buyer up front that they would not be reducing the price if it failed to appraise. Then it's up to the buyer whether they want to move forward. I would advise a seller against signing a contract that said they must sell at the appraised price whatever that is. Appraisals aren't science.
I'd go the opposite way, and make buyer sign an appraisal waiver to include with offer stating that if it appraises for less, they will pay in cash the amount needed to bring amount financed down (dofference between appraised value and selling price plus %needed as dn pmt for type of loan they are doing) to get loan.
They don’t want to apply for a mortgage unless we guarantee we will adjust the price to the appraisal if the house doesn’t appraise to our agreement.
Then just say no. But be warned that anyone else trying to buy your house is going to run into the same issue. There comes a point where maybe the house really isn't worth as much as you think it is.
As someone else pointed out, just because you like the improvements doesn't mean they raise the home value. If you spend $5000 on landscaping, for example, the value of your house doesn't increase by $5000. That's not how it works.
I wouldn't worry about a ppsf suggestion by an agent that's not seen the house. Appraisers don't usually look at ppsf for single family houses. They compare your house to recently sold houses of a similar type and make adjustments up/down for differences in age, baths, some "upgrades" like siding types, size (within reason), garages, etc.
Unless the agent did that kind of analysis, it's useless as a pricing point.
The "Buyers" may think they are the ones purchasing the house, but if they don't have cash on the barrelhead, the lending bank ends up being the ultimate arbitrator on value, they sure aren't going to approve a loan value for more than the house is worth (minus downstroke), because they may end up owning it sooner rather than later, and banks hate being upside-down. So while having the house appraised will provide knowledge, having the potential buyer's bank provide a hard limit on how large a mortgage they will approve means more, IMHO.
When mine goes on the market (providing I can't find a neighbor who's Mom wants to live near them), potential buyers are going to think they walked into a time machine - 1960's kitchen, washrooms, etc., just cleaned and painted but BADLY needing updating. It's worth what it's worth, and what it's worth will largely depend on what the market SAYS its worth - how much someone is willing to pay for it at any given point in time. Personally, I'm betting on someone currently living in a smaller house on a smaller lot in an area with higher density, stressed out at having been housebound for the past six months with no yard in Chicago, to see my 1/6 acre as if it's a "country estate", and they'll come through for me.
Or not - but I know I'm not going to start remodeling bathrooms or the kitchen at my age, especially when a potential buyer comes through and tells me that the $50K I just spent was wasted because "Gray and quartz and stainless are so last decade". Let them buy it and put in what they themselves want, they're the ones who'll be living in it.
We have buyers for our house with whom we entered into a private verbal agreement, but haven’t signed any contracts at this time. We are in no hurry to sell, but planned to move eventually for reasons that are related to some bad karma we experienced while living here. We like the house and its in great condition with lots of upgrades. We established a price for this house based on my independent judgement of what other similar homes have sold for in recent weeks/months. We are firm on our price and our buyers were fine with it. We had a handshake deal.
Lots of good info/opinions on this thread!
Although...I'm still scratching my head about the bolded part above.
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