Purchase price lower than expected

[Fernando]

Listing agent surprised subject sold lower than expected. Me too. Purchase price lower than Zillow estimate. Or is market getting weak?
Time to put on my appraisal hat and see where the numbers fall.
I think it's external obsolescence being near cemetery than other homes sold further away.

 

[TC]

I'd trade my barking dog neighbor for a cemetery.

 

[Fernando]

Almost finished my appraisal and I will appraise higher than purchase price.
Agent can't figure why it didn't have higher offers. Me too.

 

[Zoe]

Almost finished my appraisal and I will appraise higher than purchase price.
Agent can't figure why it didn't have higher offers. Me too.

I doubt graveyard has much of influence. Don't tell agent what you appraised it for unless they are your client. I come in way over contract price many times. Way under sometimes too.

Agent still gets their commission if it sells. Owner can lower price if I come in under contract price. Buyer is happy. Agent is happy. Owner don't have to sell and can be happy.

Your an agent I think Fernando. Agents are notorious for over pricing a home and then telling owner we need to lower the price.

Contract price don't rule me. The market rules me.

If you come in over contract price, it makes the agent look bad but the only way they would know is if they get a copy of the appraisal unless they are your client.

You know the buyer gets a copy from the lender. The agents involved may or may not see a copy. You are bound to confidentiality with your client.

 

[Fernando]

I went over contract price by less than 1%. No big deal.
I talked with the listing agent and he thought offered price should be higher. I assessed the situation and parties involved, and EVERYONE should be happy.

 

[Zoe]

I went over contract price by less than 1%. No big deal.
I talked with the listing agent and he thought offered price should be higher. I assessed the situation and parties involved, and EVERYONE should be happy.

Sometimes the seller agent don't like you coming over contract price. However, the only way they would know is if during closing somebody else dislcosed it to them. The market rules the appraisal. Not the agents. I am not running down agents. They help me a bunch. Some like me. Some don't. LOL

I am good with NAR at the moment. I told you I am a hillbilly and have really tough skin. I know the market. Brokers don't have much leverage but they help me on motivations of buyers and sellers.

 

[Zoe]

VA helps on purchase contract because you can do tidewater if suspected appraisal value is less than contract price. It opens the door to all parties involved and goes through the client. Sometimes you will meet contract price and sometimes you won't. It is all in black and white to all involved.

ROVs are almost non existent with VA. It is like ROV is done before appraisal is completed.

 

[Tom4value]

9 times out of 10, the listing broker ends our conversation with, “please let me know if there are any issues”. They almost never ask to be told what I appraise it for. If I come in low, they know they will hear it from the LO or the borrower, not me. If they hear nothing, they are fine. If I brought it in for the contract price, it closes fine. If I bring it in higher, they are still fine and if they don’t know the value, they don’t have to decide if they tell their client they could have gotten more.

 

[Fernando]

In the past for purchase appraisals, if I feel contract price is a bit too high or too low (there's a market value range), I would go little higher or lower in my appraisal value to let reader know what I think of the contract price. Sometimes it would get me in trouble and client wants me to get it back to contract price. Then I change ROV back to contract price. No big deal.

 

[alebrewer]

I'd trade my barking dog neighbor for a cemetery.

yeah, those folks tend to be fairly quiet - most of the time.