When an Elk Grove Buyer Won't Remove Appraisal Contingency

By
Real Estate Agent with RE/MAX Gold DRE #00697006

Selling homes in Elk Grove, or anywhere, for that matter, is all about compromise. It's not about being a bulldozer, as satisfying as that approach can be. It's about give and take. But don't make the mistake that compromise means 50 / 50 because it doesn't.

Somebody I associated with a long time ago started the premise that's taken hold over the years -- that every sitution needs to be win / win and therefore fabulous for both parties. Not necessarily. One party generally benefits a bit more than the other in a compromise or there would not be a need for the compromise in the first place.

I think about this when we present buyers in Sacramento with the option to remove their appraisal contingency to be the winning offer in a multiple offer situation. That's a freaky place for some buyers to be because it means they are at the mercy of one person's opinion, the appraiser. Well, we had 3 appraisals in this escrow in Elk Grove that closed yesterday.

That buyer still forked up a big chunk of change, even though he refused to release his appraisal contingency, although that wasn't what his broker called it. He kept saying to me, yes, we're removing the appraisal contingency, but they were not. Still, I devised an alternative solution.

You can read more in my personal blog today at this link: Selling a Home in Elk Grove Over Appraised Value.

Posted by

elizabeth weintraub

 

 

Weintraub and Wallace Realtors

 

 

Elizabeth Weintraub reviews

 

 

 

Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Location:
California Sacramento County Elk Grove Laguna Creek South
Groups:
Everything California
Northern California Real Estate Professionals
CALIFORNIA REAL ESTATE
Lyon Realtors
ActiveRain Rockstars
Tags:
elk grove realtor
selling a home in elk grove
remove appraisal contingency
alternative to removing appraisal contingency
bridging appraisal gap

Spam prevention
Show All Comments
Rainmaker
3,363,178
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Good morning, Elizabeth - interesting work around.  

Jun 22, 2017 09:18 AM #1
Rainmaker
2,558,803
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

You just never know what an appraiser will do.  I remember listing a duplex a few years ago.  The sellers (friends of mine), wanted to list above all the comps. I reluctantly took the "overpriced" listing.  To add insult to injury, the offers came in considerably above that, and I worried the property wouldn't appraise.  But, voila' it did.  

You did an excellent job herding cats in your transaction, Elizabeth.

Jun 22, 2017 06:35 PM #2
Rainmaker
3,135,121
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I must admit, Elizabeth, I'm always astonished when buyers bid up a house and their agent knows it's not likely to appraise and they still think the seller will take their offer and then reduce the price post-appraisal. I now use the same wording you mentioned... and sometimes a buyer steps up to the plate and other times they don't. And that's when you know you don't that offer.

Jun 23, 2017 07:19 AM #3
Rainmaker
2,189,919
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Michael Jacobs The negotiation strategies are my favorite part of real estate. I can use my natural born creativity in unusual ways.

Jun 23, 2017 07:46 AM #4
Rainmaker
2,189,919
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Myrl Jeffcoat You never know which appraiser you'll get. The appraisal management companies have squeezed the pocketbooks of many appraisers to the extent some can't afford to stay in the business anymore. It's not unusual to end up with an appraiser from Stockton. 45 minutes away yes but worlds away otherwise.

Jun 23, 2017 07:49 AM #5
Rainmaker
2,189,919
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Nina Hollander I have not encountered buyers reducing the price post appraisal yet but I have had them completely flake out and cancel within a few days of acceptance. I feel sorry for their agents who put in all that work, hauling them around to show homes, pulling comps, getting them preapproved, fighting for the offer, and then the buyer dumps everybody.

This is why I prefer to work with sellers. Only once in my past 43 years in the business did I have a seller change his mind about selling.

Jun 23, 2017 07:52 AM #6
Rainmaker
3,135,121
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

HI Elizabeth... I've seen more renegotiation of price after a low appraisal than people walking away. But when I seen people offering over asking now and I'm worried about comps I do ask for them to agree up front to eat the difference. Some do, some don't.

Jun 23, 2017 09:22 AM #7
Rainmaker
2,036,708
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Fort Worth, TX
Selling Homes Changing Lives

Appraisers are unpredictable. Nice topic of a sensitive topic. In my area, most of the good ones went away and there just isn't enough around. They are bringing in newbies from other states and it's tough. Hope all is well with you!

Jun 23, 2017 04:04 PM #8
Ambassador
3,356,320
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yeah, that wasn't a win-win for your seller without adding that 'max' sales price, Elizabeth! It's not always a win-win either - as hard as we try, we're actually only focused on being sure our clients win!

Hope you have a wonderful weekend!

Jun 23, 2017 08:40 PM #9
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
2,189,919

Elizabeth Weintraub Sacramento Realtor Top 1%

Put 40 years of experience to work for you
How much is my home worth?
*
*
*
*
Spam prevention

Additional Information