Home Buying in 48224>Question Details

BWilliams, Home Buyer in 48224

This is a PSA Public Service Announcement!! I have just had the worst experience as a 1st time homebuyer.

Asked by BWilliams, 48224 Tue Aug 25, 2009

Please share this info with all parties involved in purchasing a home.

1.These houses are NOT appraising for the asking price.

I had all MY ducks in a row for a Multi-family, 3 blocks from Groose Pointe, MI. This area is considred an upper-valued neighborhood. The purchase agreement was for 35k and it appraised at 20k. Buyers I strongly recommend that you either get a BPO Brokers Price Opinion or CMA Comparative Market Analysis on the home you plan on purchasing unless you have a cash deal!! . B.Williams

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4
Maureen Francis’ answer
Bwillimas

Every buyer should do their due diligence before they purchase real estate. Good advice. A buyers agent should help a buyer through the process.

A broker's price opinion is a tool that is usually done for banks for short sales and foreclosures.

I would recommend any buyer have a CMA prepared when they make the offer AND make the offer contingent upon it appraising at the purchase price even it is a cash purchase. This is important in any area of Metro Detroit.

Sorry you had a bad experience. Did you get this property or not?
1 vote Thank Flag Link Tue Aug 25, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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Good advice all around. I'll add to the previous answers that Multi-Family homes are even tougher to comp out because there are just not a lot of sales out there. And a lender would rather not lend than have any uncertainty as to value.

You've learned the hard way that just having a willing buyer and willing seller is not enough these days unless like you said it is a cash deal.

Oh well, best of luck in the future and I hope you get your home
0 votes Thank Flag Link Tue Sep 1, 2009
You know, sorry for the poor experience.

While I can't imagine anyone would let their client blindly offer without a CMA, I do suppose it happens.

Increasingly in the market today, we're finding occupied homes (non-distressed) very hard to comp out and compare to REO and bank deals.

Given circumstances surrounding lending, banks are very cautious as to what they want to do with their loans and many appraisers are scared to give out "good" appraisals (in my opinion).

Blessing in disguise though, for you as a buyer, if it doesn't appraise out. If the bank is smart, they'll close the deal for the lesser amount and move on.
0 votes Thank Flag Link Tue Aug 25, 2009
Thanks for the info. I told the bank to scrap the deal. I will begin this process again in February. I work for DPS, I do not want to have a nervous breakdown. LOL BWilliams
0 votes Thank Flag Link Tue Aug 25, 2009
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