"Sellers want what they want regardless of appraisal."
I have some buyers who are interested in a particular property. The list price is steep for the neighborhood. In reality, the current list price would put this at the higher, if not the highest, sale price in the subdivision.
One of the standards of practice I employ when working with Viera, Florida home buyers is to include an appraisal addendum with each purchase offer (even cash offers). This addendum basically says that the subject property must appraise at PURCHASE PRICE. If the appraisal is less then the buyer has the option of walking, closing anyway if the mortgage is still approved (maybe increasing down payment), or perhaps re-negotiate price.
My question to most buyers is simple? Why would you want to pay more than the property is supposedly worth based on the appraisal?
My question to sellers is simple as well? Do you really think someone will pay more than the value?
As for the response above "Sellers want what they want..." It is best to remember the market sets the price. It is up to the seller to accept or deny market value.
So what do buyers do when sellers take the subject position? Again, the answer is simple, pay it or move on. If financing will not be an issue then it comes down to motivation... Ready, willing and able buyer meets ready, willing and able seller.
Here is some related reading about the home purchase and selling process.
- After your offer is accepted.
- Terms define the real price.
- When is the highest offer not the best offer?
- What if appraisal comes in low?
- Should you buy the highest priced home in the neighborhood?
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