As a buyer, I'm always in the strongest position because I'm ALWAYS willing to walk away from a deal. I told my realtor that up front. I don't need your house! Bottom line - I'll pay fair market value (and a little over), but I'm not willing to be screwed out of thousands of dollars.
Why would anyone sympathize with a seller that is trying to oversell their home? That is absurd. This guy keeps saying "oh, the seller is losing/eating 15k." No, the sellers are trying to sell their home for more than what it is worth and that is noones fault but theirs. The seller shouldn't be able to list their home at a sale price that isn't accurate. That's whats wrong with the housing market. Bullshit like this.
Why dont sellers just get appraisals before listing and use that price and if they want more $ over that in details saying you want x over appraised price. Also I think sellers should get inspections and post reports too. Why do all that after contracts are signed and wheels in motion to have something come up and blows the deals. Further more listing agents need to be appraisers in the fact to not list a house above what they think it will appraise for using comps. Yes I know banks use different appraisers but it should never be 15k off.
Because buyers want to pick the inspector, not have the seller use a buddy. Often sellers do get an inspection, but buyers want one too. And comps vary widely by appraiser and $15,000 is not that much on a ancy home.
Sellers can get their own appraisal prior to listing however that can change based on how the market is moving-upwards or downwards. Appraisals are an OPINION of value in a moment of time. Banks require an appraisal from one of their approved appraisers from the appraisal management company. The seller could forward a copy of their appraisal for consideration but the lender's appraisal is the one that will be used for valuation and as a condition of the loan.
Cheyenne Evangeline Snow Well the seller didn’t want to come down that low and said he won’t take anything less than his asking price and there’s no way I’m paying $30,000 more than the house is worth so that was the end of that… We ended up with buying a new build and everything went smooth
This was extremely helpful. For a while, things were absolutely crazy in the housing market with most homes that I saw in the area where I want to buy selling for 1OK above the asking price, but in the past week I’m seeing a lot more homes sell close to the list price which is really encouraging for me. I’m flexible with what the bank will finance but the most I’m willing and able to pay to cover an appraisal gap is 5K, and that’s only if it’s my absolute top pick. And even if you look for a house at a lower price, if people are still paying over asking price you still end up in the same situation even if the home is more affordable. You still have the appraisal gap.
Why not just ask the listing agent a simple question: "what happens if the appraisal comes in lower than the price we already agreed to?" Then you sit quietly and patiently wait for a response. You never know what they other side is thinking until you ask. Negotiation is a process of discovery and then applying what you learn to get the best results...focusing on your clients first! The method mentioned in the video could hurt your buyers and leave money on the table. What if the sellers already had a feeling that the appraisal may come in low? What if the sellers were thrilled with the price already agreed to because it was much higher than what they thought they could get? What if they were already prepared to lower the price AND knew they had to fix some things as well? What if they will do just about anything just be done with this house and move on with their lives? $1500 might not as big a hit as you assume it to be. The point is you conceded $1500 right off the bat and your clients "ate the costs" but they may not have to! They may...but then again they may not. That is win/lose negotiating at best because you start with a concession on your part. The sellers could be jumping for joy and your clients could be out $1500 just because you didn't ask....ouch.
Maybe because he is not greedy and is advising his clients to be reasonable. If the buyer was willing to pay $15,000 more for the house, they should be happy with $1,500 and it is a peace offering to the sellers who may refuse the whole offer. It comes down to this... Do you really want the home or not.
Stop being a greedy bastard, seller has to pay your dumbass commision on top of everything, so leaving him or her with an extra 1500 won't hurt anyone. Negotiations don't have to be one sided, when they are you usually don't get what you want.
Keep in mind too that if the sellers have a good listing agent and actually want to sell the home, the listing agent will do everything they can to convince the seller to take the appraised value or pay for the repairs. In fact it shouldn't even take much convincing. Either they accept the offer or they take their home off the market and hold onto it.
What do you do when your buyers agent doesn't do any negotiation? I'm stuck, as the BUYER, watching videos online so I can walk my agent thru negotiation...he just keeps trying to get us to take whatever the seller throws our way with zero consideration for what we can do. Guy seems like he just wants a quick $9,000 commission. I'm beginning to consider letting the sale fall through simply so he doesn't get paid. Worst agent I've ever dealt with...was great while looking, but now under contract he's a nightmare and a dead-fish.
@@AlejandroGonzalez-qg3iy The best and least expensive way to buy a house is for the buyer and seller to use a lawyer. Besides layers do all the work any way i.e., title work, doc prep, money management. Real estate agents get paid for drafting the purchase and sale agreement only. This takes approximately 5 minutes. Agents do not inspect houses, secure loans, make repairs, prepare closing docs, or anything else. Think about it.
The appraiser is fully award of the accepted offer. The appraiser is often sent the contract to review for any special terms or conditions that would have an influence on market value such as a long closing date or a lease back situation. If the appraisal is coming in low then the appraiser will have legitimate reason(s) such as the square footage in the listing is incorrect or you have included portable property and chattels that are not part of a normal real estate transaction. Or it could be the marketing of the property is not typical such as a blind auction when the property is under priced to entice multiple offers that are then presented at a specific time and date in order to create an auction environment. This is different from a normal auction like antiques in that you don't know the other bids. As a prospective buyer you just get caught up in the emotion and it's very easy to over bid. Or the issue is that your offer is outside of the range of reasonableness. This may happen in a very hot market as you are expecting home prices to continue to rise. In other words your offer is not a current market price but what you hope prices will be in the upcoming months. You're just trying to get ahead of the curve to get an accepted offer. As a buyer in a hot market you have little to no negotiation power as it seems that there is always someone behind you waiving a check book to buy the property if you don't. Or at least that's what you perceive. The two greatest factors that get people to buy real estate are fear and greed. If you are afraid of being out bid or don't have deep pockets to increase your down payment then buying in a hot market may not be a good decision. The only time you get a deal on real estate is when you are the only bidder.
I'm in the exact same scenario Kevin. The only difference is that I'm buying a FSBO and it came back with $2,300 in repair estimates not including the roof whose 3 estimates were for $800, $1500 and $1650. I'm just a bit worry as to how to negotiate this one since I have noone representing me. The loan is conventional with Contingency to Appraisal and the closing date is June 30th. We are currently wasting on the appraisal for this townhouse which was beautifully renovated in my opinion located at 2449 SW 153 Pass Miami FL. Awesome video Kevin. Thanks a lot.
I just had an appraisal come back at a number lower than a 30K difference. I'm kind of annoyed that sellers are trying to scrape up as much money as they can get, but I have no problem walking away from a deal. At least I'll have the satisfaction of knowing I wasted weeks of their time if they're too greedy to cut.
Will be shocked if this dosen't happen on house I'm in contract for now. Seller said they were confident in their price. But I'd be more shocked if it came in at their asking than if it came in 40k lower... But if they aren't willing to sell for appraisal, they will be having to wait for a new buyer...
Question: We are in attorney review and the appraisal came back 18k below asking. Our realtor is both our selling/buying agent and the listing agent for the home that has fallen 18k below asking. She disagrees with the appraisal but honestly the comps and what the appraiser listed are on point. She doesn't seem to want to notify the seller of the 18k decrease.
Ouch... Obviously, that's good news for you...and bad news for the Seller. Now the appraisal becomes a part of the negotiation strategy. The Seller obviously is going to disagree with the appraisal and so they are going to not want to come down. The agent is dreading the conversation with the seller because it will be upsetting to the seller and agents don't like to get yelled at or blamed... But, if she is a professional, she does what's required, not what's comfortable. Now, the real issue is making sure that you are well-advised and represented. This is a tough place for an agent to be in the middle and it sounds like she doesn't like the lower appraised value which lines her up more with the seller's position than with yours. You might tell her that you would like to visit with her broker to make sure you're interests are still being represented and protected. Be patient and don't get adversarial because that can blow up the deal if you like the house. Be collaborative yet don't be afraid to stand by what you think is a fair price now that you've seen the appraiser's work. The appraiser doesn't represent you. They represent the bank, so they're job is to make sure that you don't over pay for the house, so that the lender doesn't over-lend on the house. Now, the final consideration is the market itself...if you are in a town where there is low inventory and lots of multiple offer situations, it is very common for appraisals to come in low and for buyers to pay above appraised value...because if you won't, someone else will. That's a decision you would then have to make. Best wishes on the purchase of your home.
@@KevinWardNOW Thx so much for responding! She feels the appraiser used the wrong comps. After I have analyzed his comps it appears he did use the wrong homes to compare with. He used sales form a yr ago with homes that were nowhere near the same sq footage, style or built in the same era lol! The home we want was built in 2008 homes he used here built in the 1930's and not similar in sq footage. The house is on a cul de sac he didn't add that to the value. Now the new issue is our home inspection (conducted yesterday). The house is on a slope and has a few foundation cracks. The lower appraisal is looking like the number we are going to have to use. We are awaiting our quickens update as she provided her comps used to come to the listing price. The house was on the market for 40days without one offer until my silly Husband and I came along lol! Our town has low inventory but I notice most people are looking for the cheaper homes that need total overhauls vs a house like this one that is pricey for the town but move in ready (minus small cracks in foundation, sigh). This is all so frustrating. We really want the home but in no way will I be paying the difference especially after the findings of the inspection.
@@naturalnicki5107 hi. Well we switched from quicken to a small broker who was “able” to have another appraisal done that conveniently came in at asking 🤦🏽♀️. We needed to get out of our townhouse as it was an awful place. We’re in the new overpriced home. I love the house but still do not love the price. Quicken refused to have a second appraisal and expected us to pay the difference to meet at 535k. I feel like it’s the housing a pending crisis circa 2007 eventually which the high priced homes. Good thing is so far the house has appreciated to 590k I hope it stays that way.
Well watching this now our houses was listed at 280k offer price is 303 base on comps from buyers agent . Appraisal came very low at 272k . Appraiser did not take and check everything on my house. That’s a 30k difference that’s a big gap. I am in texas . To me I would be willing to take half and but not for 272k not even close to my listed price. This is a big gap. I’m willing to put back the house in the market .
This literally just happened to us in this current market (2021), we remodeled the house and everything is brand new, the appraisal came about 30k under, we decided to go back on the market, have 5-8 showings every day, 4 offers in already. Some of these appraisers are seriously insane or just bad at their jobs, or they think they are going to be the solution to this current market?
Selling my houses, here’s what happened. I was selling a house. The appraisal came in at 278k from 320k I backed out. 1 week later a cash buyer came in for 305k, I took it, I just had a house on the market for 1.35 mil . I had it high on purpose. The buyer offered 1.275. I took it. The appraisal came in at 1.235. I requested they pay closing costs and they agreed. I also sold my home in hb 150k over the appraised price. A realtor broker bought it for 135k over appraised value. I hope you see what happened here.
I just went through the same thing. Only the appraisal came in at $30,000 less than asking price/my offer. Selling agent refused to lower it. So we walked away from the deal. She is under the assumption that she is gonna get the asking price. House was listed for over 30 days already before I offered. I say agent refused because she led us to believe that the owners are never available to talk.
FYI...for future reference...Listing agents do not have any authority to "refuse to lower" the price. They are required to submit the offer to the seller. Period. That is contract law, unless she is given legal power of attorney to make such a decision.
If the appraisal comes in low, then negotiate a new contract with a lower all-cash-at-closing or a higher seller finance price with flexible payment terms. Mr. Seller, which is more important to you: How *MUCH* money you get or *WHEN* you get your money?
VA came back waaaaay low on the appraisal. Dk what’s gonna happen now. Our dream is slipping through our fingers at this very moment. Isn’t life grand?✌🏻❤️
@@naturalnicki5107 the VA is using Covid as an excuse to not review our case, saying only 7% or less valuations are being allowed at this time due to the “global pandemic”. 🤦🏻♂️🤷🏻♂️ We are at 23% below asking price because of the shoddy appraisal.
VA appraisals are notoriously low. It can usually be from the appraiser not knowing the area and coming in from another town to do it. Can always look at the comps they used, see if they're outdated, as well as scour the appraisal for errors in order to get a new appraisal if possible. I've been thru two VA appraisals, they were both stressful.
Corey Taylor great question! Like Kevin said... It's all about leverage. Do you have backup offers? Was this a multiple offer situation? Did they request and did you agree to any other credit?
Corey Taylor they still only provide info, each party makes their own decisions, they sign an oath in your presence station their position non partisan
Hi Kevin ,can we trust on lender’s AVMs estimation? I recently bought a house in Seattle area and lender waived off appraisal without asking me.they said the house doesn’t need appraisal. I think that I paid 10k extra for that house.
I'm going thru this now and I'm so frustrated with it!! The offer was 279,000 -10k concession so 269,000, the appraisal came in at 270,000 so what does this mean for the concession?? I didn't plan on nor did i want or really have thousands to bring to closing, I'm really irritated at this point!! Any advice??
Lovely K so you purchased for 279k and there’s 10k for closing so $269k? Appraisal came back at 270k? If that’s correct, I’m also in the same situation unless you can get the seller to renegotiate the price then you’ll have to come up with the 9k to keep the deal alive.
Lovely K I’m selling my house and buying a new one at the same time “what I thought” I signed a contingency agreement that I find suitable housing. But today I found out it wasn’t included on the final agreement, but no one told me “agent or closing attorney” my realtor indirectly said today to my bank that I only had a week before I had to leave my home because I don’t have a contingency. So obviously hearing this I don’t trust my real estate agent or closing attorney they don’t have my best interests at all. But the home I’m buying $291,500 with 11k for closing came back at $279,000 so basically hoping the appraisal gets fixed “was missing 600 sq ft” for the second floor and wasn’t measured by the appraiser. Or else I have to pay the difference the seller doesn’t wanna renegotiate and I’ll be homeless. I used a top agent off of @upnest what a mistake that was. Only cares about the sales I’ve made it known from the get go I wanted to have a new house lined up, I have an 18 month old. That’s the Reason I’ve been telling my realtor and attorney I wanted closings on the same day, so crazy that I found out today the addendum didn’t carry over. But like I said I can’t trust either of them.
Bip nyc I believe so. ... you could lose your down payment if ur the buyer. If your the seller the buyer might not make an offer without a appraisal contingency.
As a buyer, I'm always in the strongest position because I'm ALWAYS willing to walk away from a deal. I told my realtor that up front. I don't need your house! Bottom line - I'll pay fair market value (and a little over), but I'm not willing to be screwed out of thousands of dollars.
But what happens to your escrow ? Don’t you loose it ? Cause you already signed the contract
@@Earthlove-bc Usually in the contract it will see you can back out if it doesn’t appraise.
Why would anyone sympathize with a seller that is trying to oversell their home? That is absurd. This guy keeps saying "oh, the seller is losing/eating 15k." No, the sellers are trying to sell their home for more than what it is worth and that is noones fault but theirs. The seller shouldn't be able to list their home at a sale price that isn't accurate. That's whats wrong with the housing market. Bullshit like this.
Why dont sellers just get appraisals before listing and use that price and if they want more $ over that in details saying you want x over appraised price. Also I think sellers should get inspections and post reports too. Why do all that after contracts are signed and wheels in motion to have something come up and blows the deals. Further more listing agents need to be appraisers in the fact to not list a house above what they think it will appraise for using comps. Yes I know banks use different appraisers but it should never be 15k off.
Pat Mine just came in $31,000 below the asking price
Because buyers want to pick the inspector, not have the seller use a buddy. Often sellers do get an inspection, but buyers want one too. And comps vary widely by appraiser and $15,000 is not that much on a ancy home.
Sellers can get their own appraisal prior to listing however that can change based on how the market is moving-upwards or downwards. Appraisals are an OPINION of value in a moment of time. Banks require an appraisal from one of their approved appraisers from the appraisal management company. The seller could forward a copy of their appraisal for consideration but the lender's appraisal is the one that will be used for valuation and as a condition of the loan.
@@Skor1img what did you end up doing? That's a significant amount!
Cheyenne Evangeline Snow Well the seller didn’t want to come down that low and said he won’t take anything less than his asking price and there’s no way I’m paying $30,000 more than the house is worth so that was the end of that… We ended up with buying a new build and everything went smooth
Had this happen on a deal. House was listed at $120,00 and we offered listing price. House appraised at $90,000. Huge difference
Wow, I am so happy I found this video, I learned a lot from it as a new agent, thank you!
Wish I saw this a month ago. This exact thing happened to me. The seller wouldn’t come down to the appraised price so we had to back out
This was extremely helpful. For a while, things were absolutely crazy in the housing market with most homes that I saw in the area where I want to buy selling for 1OK above the asking price, but in the past week I’m seeing a lot more homes sell close to the list price which is really encouraging for me. I’m flexible with what the bank will finance but the most I’m willing and able to pay to cover an appraisal gap is 5K, and that’s only if it’s my absolute top pick. And even if you look for a house at a lower price, if people are still paying over asking price you still end up in the same situation even if the home is more affordable. You still have the appraisal gap.
Wow.... I am in the process of buying this house, I did not how to negotiate in case the appraisal comes lower, now I know, .....great video!
Some weak realtors will just tell the buyer to come up with the difference smh
Lmao foreal, fuck that.
As a buyer I’m not just rushing either to pay 5-10% OVER market value
Because they want the extra money.
The agent don't care they just want the sale.
Why not just ask the listing agent a simple question: "what happens if the appraisal comes in lower than the price we already agreed to?" Then you sit quietly and patiently wait for a response. You never know what they other side is thinking until you ask. Negotiation is a process of discovery and then applying what you learn to get the best results...focusing on your clients first! The method mentioned in the video could hurt your buyers and leave money on the table. What if the sellers already had a feeling that the appraisal may come in low? What if the sellers were thrilled with the price already agreed to because it was much higher than what they thought they could get? What if they were already prepared to lower the price AND knew they had to fix some things as well? What if they will do just about anything just be done with this house and move on with their lives? $1500 might not as big a hit as you assume it to be. The point is you conceded $1500 right off the bat and your clients "ate the costs" but they may not have to! They may...but then again they may not. That is win/lose negotiating at best because you start with a concession on your part. The sellers could be jumping for joy and your clients could be out $1500 just because you didn't ask....ouch.
The Firehill Group: More than just real estate. Totally agree!
Maybe because he is not greedy and is advising his clients to be reasonable. If the buyer was willing to pay $15,000 more for the house, they should be happy with $1,500 and it is a peace offering to the sellers who may refuse the whole offer. It comes down to this... Do you really want the home or not.
Stop being a greedy bastard, seller has to pay your dumbass commision on top of everything, so leaving him or her with an extra 1500 won't hurt anyone. Negotiations don't have to be one sided, when they are you usually don't get what you want.
Keep in mind too that if the sellers have a good listing agent and actually want to sell the home, the listing agent will do everything they can to convince the seller to take the appraised value or pay for the repairs. In fact it shouldn't even take much convincing. Either they accept the offer or they take their home off the market and hold onto it.
What do you do when your buyers agent doesn't do any negotiation?
I'm stuck, as the BUYER, watching videos online so I can walk my agent thru negotiation...he just keeps trying to get us to take whatever the seller throws our way with zero consideration for what we can do.
Guy seems like he just wants a quick $9,000 commission. I'm beginning to consider letting the sale fall through simply so he doesn't get paid. Worst agent I've ever dealt with...was great while looking, but now under contract he's a nightmare and a dead-fish.
There are a lot of agents like this out there right now.
I’m buying my house with out a used car salesmen. I mean real estate agent
@@AlejandroGonzalez-qg3iy The best and least expensive way to buy a house is for the buyer and seller to use a lawyer. Besides layers do all the work any way i.e., title work, doc prep, money management. Real estate agents get paid for drafting the purchase and sale agreement only. This takes approximately 5 minutes. Agents do not inspect houses, secure loans, make repairs, prepare closing docs, or anything else. Think about it.
I am trying to buy a house but the seller is a real estate guy. he knows his game.
The appraiser is fully award of the accepted offer. The appraiser is often sent the contract to review for any special terms or conditions that would have an influence on market value such as a long closing date or a lease back situation. If the appraisal is coming in low then the appraiser will have legitimate reason(s) such as the square footage in the listing is incorrect or you have included portable property and chattels that are not part of a normal real estate transaction. Or it could be the marketing of the property is not typical such as a blind auction when the property is under priced to entice multiple offers that are then presented at a specific time and date in order to create an auction environment. This is different from a normal auction like antiques in that you don't know the other bids. As a prospective buyer you just get caught up in the emotion and it's very easy to over bid.
Or the issue is that your offer is outside of the range of reasonableness. This may happen in a very hot market as you are expecting home prices to continue to rise. In other words your offer is not a current market price but what you hope prices will be in the upcoming months. You're just trying to get ahead of the curve to get an accepted offer. As a buyer in a hot market you have little to no negotiation power as it seems that there is always someone behind you waiving a check book to buy the property if you don't. Or at least that's what you perceive.
The two greatest factors that get people to buy real estate are fear and greed. If you are afraid of being out bid or don't have deep pockets to increase your down payment then buying in a hot market may not be a good decision. The only time you get a deal on real estate is when you are the only bidder.
I'm in the exact same scenario Kevin. The only difference is that I'm buying a FSBO and it came back with $2,300 in repair estimates not including the roof whose 3 estimates were for $800, $1500 and $1650. I'm just a bit worry as to how to negotiate this one since I have noone representing me. The loan is conventional with Contingency to Appraisal and the closing date is June 30th. We are currently wasting on the appraisal for this townhouse which was beautifully renovated in my opinion located at 2449 SW 153 Pass Miami FL. Awesome video Kevin. Thanks a lot.
I just had an appraisal come back at a number lower than a 30K difference. I'm kind of annoyed that sellers are trying to scrape up as much money as they can get, but I have no problem walking away from a deal. At least I'll have the satisfaction of knowing I wasted weeks of their time if they're too greedy to cut.
super helpful - thank you!
Will be shocked if this dosen't happen on house I'm in contract for now. Seller said they were confident in their price. But I'd be more shocked if it came in at their asking than if it came in 40k lower...
But if they aren't willing to sell for appraisal, they will be having to wait for a new buyer...
Thanks for the awesome videos. If you don’t already have a video on a “Buyers Inspection Advisory” please.
Question: We are in attorney review and the appraisal came back 18k below asking. Our realtor is both our selling/buying agent and the listing agent for the home that has fallen 18k below asking. She disagrees with the appraisal but honestly the comps and what the appraiser listed are on point. She doesn't seem to want to notify the seller of the 18k decrease.
Ouch... Obviously, that's good news for you...and bad news for the Seller. Now the appraisal becomes a part of the negotiation strategy. The Seller obviously is going to disagree with the appraisal and so they are going to not want to come down. The agent is dreading the conversation with the seller because it will be upsetting to the seller and agents don't like to get yelled at or blamed... But, if she is a professional, she does what's required, not what's comfortable. Now, the real issue is making sure that you are well-advised and represented. This is a tough place for an agent to be in the middle and it sounds like she doesn't like the lower appraised value which lines her up more with the seller's position than with yours. You might tell her that you would like to visit with her broker to make sure you're interests are still being represented and protected. Be patient and don't get adversarial because that can blow up the deal if you like the house. Be collaborative yet don't be afraid to stand by what you think is a fair price now that you've seen the appraiser's work. The appraiser doesn't represent you. They represent the bank, so they're job is to make sure that you don't over pay for the house, so that the lender doesn't over-lend on the house. Now, the final consideration is the market itself...if you are in a town where there is low inventory and lots of multiple offer situations, it is very common for appraisals to come in low and for buyers to pay above appraised value...because if you won't, someone else will. That's a decision you would then have to make. Best wishes on the purchase of your home.
@@KevinWardNOW Thx so much for responding! She feels the appraiser used the wrong comps. After I have analyzed his comps it appears he did use the wrong homes to compare with. He used sales form a yr ago with homes that were nowhere near the same sq footage, style or built in the same era lol! The home we want was built in 2008 homes he used here built in the 1930's and not similar in sq footage. The house is on a cul de sac he didn't add that to the value. Now the new issue is our home inspection (conducted yesterday). The house is on a slope and has a few foundation cracks. The lower appraisal is looking like the number we are going to have to use. We are awaiting our quickens update as she provided her comps used to come to the listing price. The house was on the market for 40days without one offer until my silly Husband and I came along lol! Our town has low inventory but I notice most people are looking for the cheaper homes that need total overhauls vs a house like this one that is pricey for the town but move in ready (minus small cracks in foundation, sigh). This is all so frustrating. We really want the home but in no way will I be paying the difference especially after the findings of the inspection.
@@tcaver Can you share an update? What happened with the house?
@@naturalnicki5107 hi. Well we switched from quicken to a small broker who was “able” to have another appraisal done that conveniently came in at asking 🤦🏽♀️. We needed to get out of our townhouse as it was an awful place. We’re in the new overpriced home. I love the house but still do not love the price. Quicken refused to have a second appraisal and expected us to pay the difference to meet at 535k. I feel like it’s the housing a pending crisis circa 2007 eventually which the high priced homes. Good thing is so far the house has appreciated to 590k I hope it stays that way.
Thank you! This is very reassuring!
Well watching this now our houses was listed at 280k offer price is 303 base on comps from buyers agent . Appraisal came very low at 272k . Appraiser did not take and check everything on my house. That’s a 30k difference that’s a big gap. I am in texas . To me I would be willing to take half and but not for 272k not even close to my listed price. This is a big gap. I’m willing to put back the house in the market .
This literally just happened to us in this current market (2021), we remodeled the house and everything is brand new, the appraisal came about 30k under, we decided to go back on the market, have 5-8 showings every day, 4 offers in already. Some of these appraisers are seriously insane or just bad at their jobs, or they think they are going to be the solution to this current market?
Selling my houses, here’s what happened. I was selling a house. The appraisal came in at 278k from 320k I backed out. 1 week later a cash buyer came in for 305k, I took it, I just had a house on the market for 1.35 mil . I had it high on purpose. The buyer offered 1.275. I took it. The appraisal came in at 1.235. I requested they pay closing costs and they agreed. I also sold my home in hb 150k over the appraised price. A realtor broker bought it for 135k over appraised value. I hope you see what happened here.
You nailed it..
What if the value of the house comes in higher than the list price after appraisal?
ambis99 automatic equity
I just went through the same thing. Only the appraisal came in at $30,000 less than asking price/my offer. Selling agent refused to lower it. So we walked away from the deal. She is under the assumption that she is gonna get the asking price. House was listed for over 30 days already before I offered. I say agent refused because she led us to believe that the owners are never available to talk.
FYI...for future reference...Listing agents do not have any authority to "refuse to lower" the price. They are required to submit the offer to the seller. Period. That is contract law, unless she is given legal power of attorney to make such a decision.
Great video!
If the appraisal comes in low, then negotiate a new contract with a lower all-cash-at-closing or a higher seller finance price with flexible payment terms.
Mr. Seller, which is more important to you: How *MUCH* money you get or *WHEN* you get your money?
VA came back waaaaay low on the appraisal. Dk what’s gonna happen now. Our dream is slipping through our fingers at this very moment. Isn’t life grand?✌🏻❤️
@David Morris Can you give an update? What happened?
@@naturalnicki5107 the VA is using Covid as an excuse to not review our case, saying only 7% or less valuations are being allowed at this time due to the “global pandemic”. 🤦🏻♂️🤷🏻♂️ We are at 23% below asking price because of the shoddy appraisal.
VA appraisals are notoriously low. It can usually be from the appraiser not knowing the area and coming in from another town to do it.
Can always look at the comps they used, see if they're outdated, as well as scour the appraisal for errors in order to get a new appraisal if possible.
I've been thru two VA appraisals, they were both stressful.
Great video 👍👍 Thank you 🙏
What do I do when the both agents are the same & this happens? I'm the seller & my agent represents the buyer as well.
Corey Taylor great question! Like Kevin said... It's all about leverage. Do you have backup offers? Was this a multiple offer situation? Did they request and did you agree to any other credit?
Corey Taylor they still only provide info, each party makes their own decisions, they sign an oath in your presence station their position non partisan
Buyers came in and offered 50k over asking price . Their bank appraisal will be in soon . Please guide me here . TIA
What if there is nothing to repair? What do I negotiate with then?
i dont know the reason why would the lender lower their investment? house prices will go up anyway...
Hi Kevin ,can we trust on lender’s AVMs estimation? I recently bought a house in Seattle area and lender waived off appraisal without asking me.they said the house doesn’t need appraisal. I think that I paid 10k extra for that house.
I'm going thru this now and I'm so frustrated with it!! The offer was 279,000 -10k concession so 269,000, the appraisal came in at 270,000 so what does this mean for the concession?? I didn't plan on nor did i want or really have thousands to bring to closing, I'm really irritated at this point!! Any advice??
What's happened in your situation? I'm going through this also
@@Reenown idk everybody keep saying their working on it, meanwhile I'm ready to move already!!!!
Lovely K so you purchased for 279k and there’s 10k for closing so $269k? Appraisal came back at 270k? If that’s correct, I’m also in the same situation unless you can get the seller to renegotiate the price then you’ll have to come up with the 9k to keep the deal alive.
Lovely K I’m selling my house and buying a new one at the same time “what I thought” I signed a contingency agreement that I find suitable housing. But today I found out it wasn’t included on the final agreement, but no one told me “agent or closing attorney” my realtor indirectly said today to my bank that I only had a week before I had to leave my home because I don’t have a contingency. So obviously hearing this I don’t trust my real estate agent or closing attorney they don’t have my best interests at all. But the home I’m buying $291,500 with 11k for closing came back at $279,000 so basically hoping the appraisal gets fixed “was missing 600 sq ft” for the second floor and wasn’t measured by the appraiser. Or else I have to pay the difference the seller doesn’t wanna renegotiate and I’ll be homeless. I used a top agent off of @upnest what a mistake that was. Only cares about the sales I’ve made it known from the get go I wanted to have a new house lined up, I have an 18 month old. That’s the Reason I’ve been telling my realtor and attorney I wanted closings on the same day, so crazy that I found out today the addendum didn’t carry over. But like I said I can’t trust either of them.
@@Reenown you definitely need a trusted realtor this is becoming annoying af i also did everything on my part now all of a sudden everything slow!!
Great stuff
Do you agree for the Buyer to be present during an Appraisal?
Good shit
Can you back out of deal if appraisal is low despite contract ?
@Kofi O Yes, but your contract may not allow it, hence you lose your earnest money. Read your contract.
Our seller is not aggreeing with appraisal contingency in contract.Is it too risky to drop this clause?
Bip nyc I believe so. ... you could lose your down payment if ur the buyer. If your the seller the buyer might not make an offer without a appraisal contingency.
What happened to all your hair Bruce Willis? 😂
when appraisal is low that's when you say f-it and move on to the next cheapest property down the street.
N