Buyer’s Tips – The potential Appraisal Issue

I recently placed a bid on a property for a client.. a really lovely young couple – purhasing their first property together in wedded bliss. The property had been on the market for over a year, and all of a sudden it had ‘multiple bids.’ I didn’t know the agent, didn’t know if there were multiple bids, and I suggested to my client that we hold firm at one price… She really wanted the property and asked that I bid more… and we had a meeting of the minds… The only thing here though, is that I was representing the buyers, and I wanted to protect them. I expressed my concern about the appraisal issue…the agent said there would not be a problem….Mmmmmmh… from her mouth to you know who’s ears. I informed her that we would move forward, but if it did not appraise – I did not want her coming back to us asking us to pay extra or to ‘work it out between us’ – it would not happen…. the owners would have to come up with any differential.. and I wanted it spelled out/understood from the beginning. My clients wanted that property, are getting married, and I did not want to have to start looking a few months later beause we hadn’t agreed upon something upfront.A

It took 2 days for the agent to get back to me (mmmmh.. amidst those other bids).. and we had an accepted offer….

Now, I usually write reports for the appraisers when I am the listing agent… I want to make sure the property appraises, and I do not know the caliber many times of the buyer’s agent… When the appraisal came around on this property – the agent ‘could not be there, and emailed me listings that had sold some 8 months ago and were not viable…Plus they were from a different town…. I gave the appraisal my report, and her report.. and I apologized for not having too much to give to him. I had seen beforehand there was an issue. Well, as it turned out, there were 2 similar properties in contract – they had not appraised, and therefore this particular property did not appraise either.. I was so happy that I had negotiated on this prior to getting the appraisal news… Yes, a buyer can walk away if the property does not appraise but what heartbreak when they are looking forward to closing day? Now, they are ecstatic that they will get the property at a lower price…

New Rochelle is GREAT!