RE: 2 outa 3 aint bad!
It looks like deal #3 IS going to hold together! The appraisal on our $492,000 sale in Laguna Isles came in low. The report suggested a value of $465,000 and that was UNDER a recent sale of the same model, in the same condition with similar (although less overall) interior and exterior upgrades on the same street, same lake…that is only 30 days old! That sale closed at $467,500!! (Whiskey Tango Foxtrot!)
The buyer for our property is putting a substantial bit down, which is a benefit and even HE sees the $465,000 as not reflective of current market value or market condition. The choice is simple…take the (any) appraisal as “gospel” and in most cases allow the deal on a home you want, love, need, can afford-to die…OR establish a number somewhere between the contract and the appraisal and CLOSE!
The sellers win because they don’t have to go back available and begin to show the property again…the buyers are getting the property for less than they had agreed to pay and the “market” will reflect a sale of a ready willing seller and buyer coming together…The neighborhood benefits, the buyer and seller and realtors benefit…The bank makes a loan, the appraiser gets paid (ugh)…the inspection company did their job and got paid…NOBODY loses!
Appraisals and appraisers would be smart if market condition (lack of quality, available properties-supply and demand) was taken into account. I don’t want the wild wild west like before but I would settle for simple logic! Houses have value in dollars and cents, yes! But houses also have values that change based upon need, availability, access…Appraisals don’t look at that and I believe they should! (And I am not alone)
We are holding the 3rd of 3 GREAT year-end deals together WITHOUT the help of the NAREA!
Follow me on twitter at @resalesguy and @chenoregroup for more lively debate and commentary if you like what you’re seeing here…I try to never cross the line but I admire the view standing right smack dab on it sometimes!!