“Appraisal Challenges and the FSBO”

“Appraisal Challenges and the FSBO”

 

 

I could see it coming from the minute I spoke to the buyer. He shared that they were purchasing a home that was being offered directly from the seller. The property had been on the market for a couple of years. My immediate question was why was it on the market for so long? Usually the one main reason is price, (overpriced that is).

 

I took the mortgage application and knew the client would have no issues getting a mortgage. I asked him, what if the appraisal comes in below the purchase price. Even though he didn’t see that happening, I did. Sure enough that is exactly what happened. The appraised value came in $16,000 below the agreed upon price.

 

After a couple of weeks between buyer and seller conversations, they made an agreement. My client is paying $10,000 less for the property and coming up with $6,000 more toward the down payment.

 

I cringe when buyer and seller are not represented but that is what some do thinking they make out better but I never understand how. Two years on the market? How can that possibly be a smart move for any seller?

 

Image courtesy of stuartmiles/freedigitialphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 23 commentsJoe Petrowsky • November 25 2015 06:25AM
“Appraisal Challenges and the FSBO”
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