It has finally happened.

By
Education & Training with Keller Williams Client's Choice Realty

It is with great sadness that one of my deals has fallen through because an appraisal came in too low.  How low you ask?  $39,000.00 too low.  The seller refused to come down and the appraiser refused to go back out or change the appraisal because the three (3) comps in the complex were too compelling.  My buyers obviously should not overpay and the sellers have it in their minds it is still worth $400K!!!!!  The seller will not go down and my buyer's will not overpay. 

There are too many agents out there "buying" listings.  We are the professionals and REALTORS should uphold the ethics we abide by as REALTORS.  Along with the news about scrutiny of the mortgage industry, we should encourage agents and realtors everywhere to protect our profession.

What is a home's true worth?

Comments (6)

Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
Irene- A property is only worth what a buyer will pay for it...I'm curious about why your clients made an offer on a place you seemed to know was so overpriced.. I'm assuming you told them what the comps were so they had to know it wouldn't appraise..
Mar 15, 2007 07:43 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent
There are a lot of sellers in denial.  I have coached a few sellers and not taken listings because they refuse to believe the facts.  I won't waste dime one marketing a home that will not appraise, period.  It doesn't fit into my business plan.
Mar 15, 2007 10:24 PM
Michelle Hansen Nuzzelillo, Broker/Owner
The Red House Realty Group - Tamworth, NH

We're seeing that now... Even if it's a cash offer and I feel comfortable with our offer, I am always putting in an appraisal clause these days. 

Mar 15, 2007 10:53 PM
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal
I second what Kaye Thomas said.  If the value is really $39,000 less, there easily could have been an appraiser who would have come in at what your contract price was.  I would send the appraiser a nice thank you card for saving your buyer from making a mistake.
Mar 16, 2007 12:46 AM
Debbie Creech
ERA Team IV Homes - Poughkeepsie, NY

I have had a few seller's with get rich quick in their minds in the past.  I learned my lesson and will not take a listing if the seller wants to overprice.  It is not worth my time or expense to market it. 

 

Mar 16, 2007 03:17 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
Bingo Irene!  Now if one responsible agent could have driven this home to them PRIOR to the listing, it could have helped you out in the long run.  I hope the agent has the tenacity to drop this listing if it falls out of escrow.  They obviously cannot get them to negotiate a lower price to make this a done deal!
Mar 16, 2007 04:50 AM