What if you were buying a house, and the appraisal came in $6,000 below the sales price, and the seller refused to lower the sales price to the appraised value? You REALLY want the house, but you are reluctant to pay over the appraised value for it, but the seller says he won't lower the price.
That's a price my team is dealing with right now. We are helping a buyer close a sale on a house that is lovely in every way. The sellers bought is in 2006 for $555,000 from the builder. Since then, they have updated the bathrooms, added a theater room, and a wet bar with wine chiller, fridge, microwave, and fancy tile. They put the house on the market for $505,000 in late September because the last the last three houses in the neighborhood that were the same model sold between $402,000 and $495,000 without the theater room and wet bar.
Our buyer offered full price, $505,000, and asked for a $4,000 closing costs credit, which she got. Hooray!
The appraisal came in with a price of $499,000. The appraisal showed the wet bar and gave a value of $4,000, but it did not show a value for the media room, or the updated bathrooms.
As I said, Mr. Seller said at first blush he wasn't going to budge on his price. The buyer said she would add an extra $3,000 to the price to meet him half way to the value; The listing agent said she would chip in $500 of her commission toward the difference.
So we are letting him marinate on this thought: Is he willing to give his house back to the market, and look for another buyer over $2,500?
Is he going to let $2,500 stand in the way of a settlement in two weeks? In two weeks he will be out of this house and into his new house.
We found out that he is buying a new home from a builder, and one way or another, he MUST go to settlement on the new house.
So we shall see if he is pig-headed enough to turn down a sure thing over $2,500.
This round of negotiations has been going on for a week. We have been holding our client's hand through the process. We've hit some turbulence, just like an airliner flying across the nation. Our client is the passenger and we are the flight crew. We may hit a little more turbulence, but one thing she can count on is we won't bail out on her.
If you are thinking about selling or buying and you want a team that of skilled negotiaters working for you, you need my team and me on your side throughout the process.
Hopefully, your flight from homeless to home owner will go smoothly. Just remember, we won't bail out on you.
Talk to Erick Blackwelder about buying or selling a house. Text or call Erick at 703-677-1120.
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