Linda White

I think a key factor in your dilemma is that home sellers can ask whatever they want to ask for their home but they may not be able to get it. And we should not disrespect appraisers or lenders who seem to "bring us down to earth" based on current prices of SOLD homes in our location. In your example, it does cost more to build a ranch home than it costs to build a 2-story, for instance. And if a basement is finished or even partially finished, that square footage is noted but it carries less value than finished space above ground level. For example, you may find a home which was valued at $140 per square foot on the above grade square footage and $50 per square foot on the below grade square footage. Either figure could be higher or lower due to the quality of the work on either level. You may find that, comparing prices from Bucks County to Centre County, there is a wide variation based primarily on location. If you are working with a buyer's agent in Centre County, he/she can show you comparable sold properties in your chosen area so you have a better idea of what to offer instead of just giving the seller what he/she is asking. Of course some sellers are reasonable and motivated and others are not. And you should protect yourself by stating that your offer is contingent on an appraised value equal to or greater than the offer price. The bottom line...appraisers and lenders can keep you from paying more than you should for a house. Due to predatory lending and other poor representation in the past, many people have ended up in bad situations. We're all trying to do our part to avoid these issues in the future. If you are not already being represented by an agent in State ColIege, please contact me additional assistance. Linda White, lindawhite@pa.net, 814-571-0804 - Tue Oct 27 2009, 19:41