When an agent rejects a perfectly good offer with a value that you know will never appraise, what can you do? I like this agent and my client loves the property, but during our back and forth on the purchase price I was told a number of things about how Appraisers do their job. Not wanting to get into an argument I suggested that he was wrong and that the price they have on their property will not appraise. I was sent a long and nicely written note by the agent, which I appreciated, there just aren’t enough polite agents, but his thinking was so far off.
I was told that Appraisers never use price per square foot in their calculations. I work with a lot of cash buyers and always have our properties appraised because the lack of a bank that triggers the appraisal makes this necessary. Knowing that price per square foot is one of the many calculations that are used I am wondering how to respond. Truth is the deal will fall through if someone steps up into his price, but me saying that sounds as bad as he telling me price per square foot is not used.
I shared his note with one of the appraisers I use and the appraiser said this agent is incompetent and unprofessional. While I will not go that far, I think the agent is truly misinformed and is feeding his client misinformation. My client is still hoping to get the home, but without some reality to the agents thinking and advice to his poor client they will not get this deal closed.
What do you do when you have an agent who does not know how things work? What would you do in this situation? Keep in mind I like this agent as a person, he was available when I needed him has been forthcoming with the information I needed, but just is clueless on the appraisal process and has too high a value on his home. Clueless agents are everywhere, what are we to do?