“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
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.
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