I have a sad story. And a question...
After spending months showing clients homes all over the county, I'm afraid they were beginning to feel they'd never succeed in buying a home in today's market - their price range is hot!
Then, I heard thorough my personal grapevine about a house that had been bought at auction and was in the process of being rehabbed. It was not yet on the market, so we had the inside scoop on this property, and it was exactly what my clients were looking for. It had had a complete make-over, a huge newly sodded backyard, was single level, in a great neighborhood with friendly and professional neighbors and even had mountain views to the east. This was my clients' dream home - and we didn't even have to compete with multiple offers, nor wait months for lender approval. I was the big hero. My clients were thrilled.
We went into escrow, and were set to release contingencies today. Then the appraisal came in. LOW. $14,000 low. We were in escrow for $284,000, and the VA appraisal came in at $270,000. Of course, this was 100% loan, and my buyers didn't have anywhere near $14k to make up the difference.
And, the seller, of course, was unwilling to adjust the price, especially since the property had never seen the open market. I was absolutely crushed for my buyers. I asked the listing agent: "You WERE at the appraisal, weren't you?". "Oh, no, I never bother with that - I just give them a lockbox code and let them go on their own.", she said. "I wouldn't want them to think I am trying to sway them".
I was SHOCKED. I ALWAYS meet the appraiser at any of my listings. I find they are always totally grateful for any additional information or insight I can give them. Of course, I don't do anything that could possibly be construed as trying to influence them in a fraudulent or unethical way. But yes, I do try to bond. After all, appraisers are human, and a pleasant experience at the site may have a positive effect.
But more importantly, there are so many factors that an appraiser does not have access to - so many intangibles. An appraiser sees the property only 1 time, and often they have only seen the comps ON PAPER - they don't even drive by. I, on the other hand, have been there multiple times, meeting the neighbors, assessing the ambient noise, comparing it to the 10's of other properties out there that my clients turned down in the price range. After having seen EVERYTHING on the market in the $260-$290k range, believe me, my buyers and I know that this property was better than anything else out there.
Had I known the listing agent wasn't going to be there, I would have met the appraiser myself. I feel she's to blame for my clients losing their dream house. I can't swear it would have come in at $284k, but I am willing to put money on it that the gap would at least have been a lot smaller.
What do you think? Is my bitterness misplaced?
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