when a house selling lower than the market value!

[Tony V]

"The subject property has been under-sold by the listing real estate agents. Our assessment of value and attached supporting sales evidence clearly indicates this to be excellent buying at $270K"

"For reasons unknown to your appraiser, the subject is selling at below market value."

or..

The subject is selling at below market value. According to (broker/homeowner) the subject is an (estate, quick, divorce) sale.

Ken...I am not sure of stating that it is an excellent purchase...would be a good idea..(just my opinon)...kinda gives me an uneasy feel....like you are encouraging the purchase..

 

[Big ole Boy]

Houses don't sell below market value.

Houses just sell.

Market value is constantly being estimated.

Nobody knows market value.

Your question is a little off.

 

[Mike Kennedy]

Another Factor To Verify .........

always double check the CONTRACT DATES of the comparables (especially on new construction) to determine time trends positive or negatives.....pre-construction discounts, and verify if possible INTERIOR/Exterior Quality Upgrades. (applies to resales on existing homes as well).

 

[Steve Metz]

I have been seeing a lot of this with FSBO sales. A lot of these HO under price the homes by about 10%. It used to be FSBO's were usualy way over priced.

 

[aussie ken]

Poet

Lovely poetic response David

 

[Terrel L. Shields]

> personally would not start asking questions of sellers and listing agents regarding why it is selling below market value.... The reason is that the act of so doing is expressing an opinion of value to someone other than your client<

When we start second guessing the reason something happens we expose ourselves to the claim that we are promoting something beyond our own expertise.

In a future claim of fraud, saying things like 'this is below market and a great buy', can be construed as conspiracy to commit fraud. What if there is some major defect in the house?

Just finished an appraisal w/ a subcontractor that was sold 5 times since it was built in 1997. This bunch has been in it 1 year. Ok? What's the problem? I had a clue. The train track joins the property and literally shakes the house when a train comes thru. S bound trains approaching a nearby intersection sound the horn adjacent to the property. Making optimistic statements about the property could easily be disputed in court. Location, Location, Location? try Liability Liability Liability

 

[Kevin Mc]

Underwriters hate seeing that......

Have one on my desk right now.....subject is selling for $370000(bout 25-30K below market). My appraised value is a conservative $395K. The underwriter insists I write a detailed explanation as to why it is selling so low. Wasn't listed with an agent, I met the buyer at the home(he already has keys and its vacant). He begged me to come in at or below the sales price(no dice) and I have no idea of the particulars, nor do I care. I left a mesage for the underwriter saying as much.I reported market value, thats my job, attempting to get invloved in everyones business is not.

 

[Nader Maramkhah]

Houses don't sell below market value.

Houses just sell.

Market value is constantly being estimated.

Nobody knows market value.

Your question is a little off.

David, I disagree.

I hope you never have a situation to sell your house less than what it is worth for. Because if that happens, you will never, ever forget it.

 

[Robert Dunkle]

I guess I'm nosey, or paranoid, but I would like to have some reassurance that there isn't a problem (that I missed) with what I consider a low sale. I do not tell anybody I think it is a low sale, just ask to confirm the sales price and terms, along with asking for a CMA whether it is below...or above market. Typically, someone will start justifying the price and indicate the reason. If they don't, I double or triple check everything then send in the report. I do not indicate that it sold below market..even though anyone who can read will see the difference between sales price and my indicated value.

It is not the appraisers' duty to be an advocate for the property......only for their report!!!

 

[Nader Maramkhah]

I do not indicate that it sold below market..even though anyone who can read will see the difference between sales price and my indicated value.

It is not the appraisers' duty to be an advocate for the property......only for their report!!!

Robert, that is what happened in my case, the UW wanted me to state that "the property is selling below market value", and if I could, explain the reason(s).

But, usually, we can not find the reason(s), because we can not discuss the case, clearly, with the parties involved in transaction,

Just we got to make sure it is not becuase of some obsolescence that we have missed.