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House is in Florida....
I am telling my friend she is crazy to sell her house for $60,000.00 less than what it is tax appraised for.
# 1 ... she is in no hurry to sell.
2... It is a nice house on a small tourist island... Ft. Myers Beach. It's not like it's in Ft. Myers or Cape Coral.
3... Realtors told her to list it at $399,000.00 which is MORE than it is tax appraised for.
4... Season is just now starting for Florida, her chances for selling are now at their best
Her thoughts.... She has had 3 contracts and none were able to obtain financing.. Time to take the money and move on...
Open for thoughts here... Thanks !!!
Florida is a real estate bloodbath. Forget everything you know. The rules will be rewritten in the next few years.
The house would appraise for $385K easily... The last contract selling price was for $374K.
All 3 buyers were not able to obtain a mortage and one was going to put $70K down. Was told banks just are not lending, had nothing to do with appraisal or inspection..
The house is not in foreclosure.
If you're convinced she's selling for way too low, the solution here is simple. Buy the house at the lower price and resell it at the price you know it should sell for. That way everyone's happy - she gets what she would have gotten anyway, you make a decent profit on a sure thing, and the neighborhood doesn't have to suffer with a lower than expected comp.
Not willing to take that risk? Now you understand why she's selling it for the price she is.
The house would appraise for $385K easily... The last contract selling price was for $374K.
All 3 buyers were not able to obtain a mortage and one was going to put $70K down. Was told banks just are not lending, had nothing to do with appraisal or inspection..
The house is not in foreclosure.
That is just not true. Banks are lending. People need to have a decent credit score and a down payment. 1290 closed on property in Orange County Florida in the last 30 days. Of those only 575 were cash the rest got a loan.
Orange County is just one county in our market area and I didn't take the time to do the stats on all counties...time to leave and go show properties.
It's fasinating/scary to watch what some municipalities all over the country are doing to balance their budgets.
Considering these counties didn't hesistate to waste money when assessments and sales were high, they are now all struggling with lower assessments and slower sales. Too bad they didn't plan for a rainy day!
House is in Florida....
I am telling my friend she is crazy to sell her house for $60,000.00 less than what it is tax appraised for.
# 1 ... she is in no hurry to sell.
2... It is a nice house on a small tourist island... Ft. Myers Beach. It's not like it's in Ft. Myers or Cape Coral.
3... Realtors told her to list it at $399,000.00 which is MORE than it is tax appraised for.
4... Season is just now starting for Florida, her chances for selling are now at their best
Her thoughts.... She has had 3 contracts and none were able to obtain financing.. Time to take the money and move on...
Open for thoughts here... Thanks !!!
Tax appraised value, does not determine the value, it is current and newest COMPS for your area, and nothing more, and a buyer will determine the value of your home, can't get any more then a buyer is willing to PAY!
In this market I would guess that home values have dropped since the last tax appraisal.
in a declining market the longer a house stays on the market the more Value it will lose. Folks dropping their prices are chasing the market down to the bottom. I would sell while the selling is good.
OP, if your friend is in no rush to sell, then why is she? Is it worth it for her to sit on the house for another 4-5 years to see if the FL market comes back? Can she rent it out during the Winter/Spring to "snow birds" and make enough to substantiate holding onto it?
If she wants to sell, and if she is not upside down by selling it $60K under the tax appraisal, she should do it. FL is one of the hardest markets in the country right now. To break even and walk-away still "in the black" is about as much as one can hope for if they have owned a FL property less than 10 yrs. . I know folks in central FL who have seen their home values drop by 50%.
A couple of years ago it was tough to find properties on/near the beach in FL. Not so anymore, there is lots of competition out there. Three contracts and no financing tells me something is very wrong. Like others have said, it either came down to the appraisal or some folks who didn't have the 20% down to make the deal go through.
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