Mirror, mirror on the Wall - Yeow, it's the Appraiser! It is a win-win for my buyers right now as we have negotiated down the original agreed upon price of a home purchase. This is after a highest and best competitive bid process for a North Kingstown home for sale that was on the market less than a week.
It was a truly emotional buy for this house…the buyers walked into this home and immediately knew this was the North Kingstown home for them. I knew they loved it. Meanwhile another couple of buyers were throwing eye darts at them…you know the kind like what are you doing here (yes, they coveted the home too).
Even as I prepared the comparable properties to show the buyers, their hearts were going thump, thump, thump to command a price to ensure they got this North Kingstown home. They wanted to bid higher than my comps indicated. I reminded them it would have to appraise for the sale price. That was also part of our contract. No matter, they went for a high bid. They also had the winning bid.
Who did not win – the sellers did not win. The appraiser said I am valuing this home for $20,000 less than your purchase and sales contracted price. Actually I was surprised and when I finally received the appraiser’s comparable properties- I would not have used a couple of them. One property was way outside the condition of this impeccable property. I am not arguing with it. The listing agent is screaming!
Challenge the appraisal then (well that is what I would do for my sellers) and substantiate your own comps but the listing agent did not do that. We negotiated a reduction in price back and forth between buyers and seller (I felt like this was a short sale negotiation) and I was not giving up much money on our side. Ultimately, the seller came down $15,000 on the agreed purchase price and my buyers are getting a better deal (so much for the highest and best offer here!).
You know I am glad the appraiser says it all. Can’t always say that line and don’t want to say that line when I am on the other side of the transaction. And I don’t want to eat my words at some point. Mirror, mirror on the Wall, it's the Appraiser.
Ginny Lacey Gorman is a North Kingstown Realtor who works and knows the North Kingstown RI geographic area of homes for sale, schools, happenings, important tidbits of information and businesses well. Waterfront, water view, ocean front, luxury and coastal RI real estate are her specialty, so call Ginny for your buying and selling home needs. As North Kingstown short sale agents, she and her team helps clients navigate successfully the rough short sale waters throughout RI, contact Ginny if you are having trouble paying your mortgage. When you are in need of an internet savvy RI realtor® who sells homes in this real estate market, call Ginny today at 401.529.7849.