On just reading a post on properties that did not appraise, and the sellers wouldn’t budge (much) on price, made me want to share what I have been doing for some time now… I think that we all have an idea whether a property will/will not appraise when we enter into the bidding fray… In best representing my clients, I always include into the bid the simple phrase “Should the property not appraise at full agreed upon sales price then the seller will offset any differential”.
Hey, the seller is claiming his house is worth so much.. why not sign off on that within a contract… It took my attorney a while to get my point.. He stated that if it shouldn’t appraise the buyer can ‘walk.’ That is true, but at that point, the buyer has invested his emotional connection to the house, the inspection costs, the mortgage application fee and the appraisal fee… It is sometimes much easier to just agree on an amount with the seller like halving the difference or whatever and continue on…. Going into the transaction with the knowledge that the seller will have to pay any differential will offer your buyer the satisfaction that he is being well represented, and will not be over paying for that home, and isn’t that we all want for our clients?
Larchmont and New Rochelle are GREAT!
