I was recently involved in in a transaction that I thought was never going to happen. My client, a high net worth individual could have purchased the house for cash, but opted to put a large amount of cash down and use his cash elsewhere. After conducting extensive due diligence on his behalf and conferring with other agents and my broker, we determined the value of the house based on recent sales and comps. The sellers were asking for $500,000......there's no way it's worth that Mr.Client. Based on our research and numbers its only worth about $400,000.
My client has viewed dozens of homes and flies back and forth regularly around the country, so my time with him is extremely limited. This is the house of his dreams......he wants it! We put in our first offer.....rejected. We put in a second offer for $475,000-which I think is waaaaaaay too high-.........rejected. Finally, my client offers full asking price.
During this process I think to myself "there's no way it's going to appraise," and I'm going through the motions of my clients requests. During inspections I discover the house is owned by a UFC® fighter by the name of Tito Ortiz and his ex-wife. Overall the entire process went very smoothly. I'm with another client and receive a call from this client, but I can't take the call. Then I hear a text come in and look down at my phone. I was almost floored......"Call me......the house appraised for full asking price." WOW. Goes to show you that the market will dictate what the price is and no matter how much we think we know, sometimes we really don't. I'll eat that sort of humble pie all day long. My client got the house of his dreams and I got to meet one of the first and legendary fighters in the UFC® and sold a house worth $500,000.
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