This week I watched as another Fort Lauderdale Home for Sale closed far below prices that I know had been offered by numerous buyers because of appraisal issues, and I am sincerely looking for someone to give me some insight. How does this come to an end?
How does the Ft Lauderdale Real Estate decline come to an end, as long as appraisers are only willing to appraise property lower than the last sale, as they check the box which says "declining market"?
Please don't get me wrong I do not blame appraisers for what is going on today in Fort Lauderdale Real Estate, they too have put into a tough position, simply I am questioning how we find our way out. Recently I watched a piece of Fort Lauderdale Real Estate close at a price that simply was not reflective of the Fort Lauderdale Real Estate market. Here is what happened.
The Ft Lauderdale Home was an older property, totally renovated and one the most detail oriented renovations I had seen, simply it was beautiful. Ft Lauderdale Real Estatebuyers clearly agreed as numerous offers all in the low $400,000 range appeared quickly. This Fort Lauderdale Home was under contract within 7 days, with a backup contract. In most markets 7 days is usually an indication that it was priced too low. What pursued was sad, for the homeowner and the first two buyers, the house appraised for about $385,000 (all my numbers have been changed so that none of the parties involved will be offended). The first two buyers and the seller could not reach an agreement. The house immediately went back under contract in the high $300,000 range. The seller feeling comfortable moved into their new home, and just prior to closing the home was reappraised by the buyer's bank and the appraisal came in $10,000 less that the last two. After much back and forth the homeowner, I am sure a bit disgusted sold the home for $379,000.
The buyers who were willing to pay more are needless to say unhappy, the neighbors are all unhappy, the banks that are effected by values in the area should be unhappy, and I sincerely don't understand what happened to the concept that, the true value of a piece of property is what someone (or in this case numerous people) are willing to pay?
This is a course of events that we are starting to see all over South Florida, and I have started to inform Ft Lauderdale home buyers that this could happen. A negotiation may or may not work, and you may not get to buy the home, unless you are willing to accept purchasing above appraised value and coming to the table with additional cash. The appraisal issue is creating even more of a Ft Lauderdale Real Estate market where cash is king and the average FHA buyer is having a hard time finding a Fort Lauderdale Home for Sale.
Interested in exploring the Fort Lauderdale Real Estate market you can find all Ft Lauderdale Real Estate Listings at www.FortLauderdaleGroup.com, and feel free to call Eric Miller and Associates with your questions and referrals.