New condition property with damaged flooring "as is."

[DTB]

i countered my offer by $5k less -or- having the seller make the repairs. seller gladly took $5k off the price, so in my example with real world real estate experience as a home owner, home seller and appraiser the discount was the exact amount of the repair required. if i had lowered my offer by more, say $7k or $10k, the deal would not have completed.

$5K off the seller gladly accepted













Any more would have killed the deal.

Lots of space between those two positions.

 

[DTB]

let's flip it. if YOU were selling a house and found it needed $5k in repairs after you had negotiated with a buyer and the buyer came back and said they wanted $10k off for a $5k repair or no deal, would you lose an additional $5k because someone asked you to give it to them for free?

IF I was in a position to not be able to complete a $5K repair I may indeed entertain an offer discounted $10K. If I liked the rest of the terms, I'd likely not queer a deal for $5K.

 

[DTB]

e.g. the fact that a lower offer would have killed the deal means that the lower offer would have been, wait for it...... below market. Or is that not real world either?

Are you kidding or what?

Every offer that a seller rejects indicates that offer is below market? Puhleeze, I can't believe some of you in this thread.

 

[alebrewer]

A $60k home here is either a MH, or it is 40 years old.

That's just a silly statement, Terrel. While I would agree that new construction site built would be cost prohibitive (at least in any case I can imagine) at $60k, the age, quality, and condition of homes in the $60k price point can run the gamut... it all depends on the local market.

 

[alebrewer]

I can't believe some of you in this thread.

that's impressive. I can't believe a LOT of folks in most all threads...

 

[Terrel L. Shields]

That's just a silly statement, Terrel. While I

I have yet to see a house of 20 years age that is pristine sell for $60 or less, even MHs. If pristine it will bring more. Even then, it can have issues. My sister in law just bought a house for $188k, 6-8 years old. The garage door fell off the hinges Xmas eve, unexpected. Trapped her car inside so her daughter had to go retrieve her for Xmas. Sold a house in1992 in Springdale, AR which was 1 year Old. Buyers called six mo later, water heater quit.

If $60,000 here it is likely very old or built in 1970s and only minimally updated. And with disclosure you can find plenty of not so obvious things. You should get out more. And inspect more carefully. What a house brings in Stinnett, Texas has no relation to my market.

 

[alebrewer]

Are you kidding or what?

Every offer that a seller rejects indicates that offer is below market? Puhleeze, I can't believe some of you in this thread.

Agreed - I should have qualified that statement. How's this?
Assuming that:
(1) TRES was acting prudently, knowledgeably, and under the assumption that there was no undue stimulus
(2) the seller was acting prudently, knowledgeably, and under the assumption that there was no undue stimulus
(3) the market for the home was a competitive and open market
(4) both TRES and the seller were typically motivated, well informed or advised, and acting in their own best interest
(5) a reasonable amount of time was allowed for exposure
(6) payment was remitted in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto
(7) the price (sans the additional discount) represented the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale

THEN - yes, the additional discount would have been below market.

Is that better?

 

[TRESinc]

Lets not flip anything; (no goading); you now have expanded more light on your original comments, don't you think ??

nope. my original post on my example said the mold issue was found after the home inspection, which doesn't occur until the parties have signed the contract, so nothing was added that we don't deal with on a daily basis.

$5K off the seller gladly accepted

Any more would have killed the deal.

Lots of space between those two positions.

not really. when the deal was said and done i invited the sellers over to see the renovations i had made (and we are still friends to this day). i specifically asked them what the bottom figure they would have accepted would have been and had it not been for the mold issue that, from my perspective, would have killed the deal had it not been remediated. they said it was $1k above what i had paid, so they were right there. had i reduced my offer by more than the repair cost they would have backed out of the deal.

IF I was in a position to not be able to complete a $5K repair I may indeed entertain an offer discounted $10K. If I liked the rest of the terms, I'd likely not queer a deal for $5K.

must be nice to be able to throw away $5k like that. i wouldn't think most sellers would, especially when the cost of repairs is being doubled out of greed.

 

[alebrewer]

I have yet to see a house of 20 years age that is pristine sell for $60 or less, even MHs. If pristine it will bring more. Even then, it can have issues. My sister in law just bought a house for $188k, 6-8 years old. The garage door fell off the hinges Xmas eve, unexpected. Trapped her car inside so her daughter had to go retrieve her for Xmas. Sold a house in1992 in Springdale, AR which was 1 year Old. Buyers called six mo later, water heater quit.

If $60,000 here it is likely very old or built in 1970s and only minimally updated. And with disclosure you can find plenty of not so obvious things. You should get out more. And inspect more carefully. What a house brings in Stinnett, Texas has no relation to my market.

Just a quick perusal of my market:

8 Retreat Dr, Possum Kingdom Lake, TX 76450 - realtor.com®

View 15 photos for 8 Retreat Dr, Possum Kingdom Lake, TX 76450 a 1 bed, 1 bath, 532 Sq. Ft. single family home built in .

www.realtor.com

And mine is not a low rent market. I'm sure, were I to take the time, I could find PLENTY of examples of perfectly habitable homes in the $60k price point.

That is not the point, though. The point is that it is dangerous, as an appraiser, to approach an assignment with preconceptions based on nothing more than your opinion. MUCH safer to let the property, as well as the market, speak for itself.

 

[Terrel L. Shields]

That is not the point, though. The point is that it is dangerous, as an appraiser, to approach an assignment with preconceptions based on nothing more than your opinion. MUCH safer to let the property, as well as the market, speak for itself

so we do the Sgt.Schultz shuffle, eh?