Home Selling in Kenosha>Question Details

Tom, Home Seller in Kenosha, WI

I am selling a historic house, with a really nice view of Lake Michigan, in a neighborhood with very few recent sales, none of which are comps

Asked by Tom, Kenosha, WI Thu May 27, 2010

All houses are restored executive mansions of 1900-1930, and all different. Banks, when appraising, use similar sized houses several streets over, of similar size but not character, and with no lake view at all, as comps. They are not even close to comparable; every realtor I know considers them an entirely different market from the mansions. What to do when a buyer bases his offer on such an appraisal?

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9
Buyers base their offers on all different variables sometimes. With the right marketing plan you will find the right buyer for your home!
0 votes Thank Flag Link Mon Apr 14, 2014
do you have any bedrooms on the first floor plus bath, also what type of heat thank you
0 votes Thank Flag Link Sat Apr 5, 2014
In reply to one of the respondents, yes it is Allendale, near across from the beach at Eichelman Park.
0 votes Thank Flag Link Sun May 30, 2010
Hi Tom,

You do control the list price of your home, but an experienced agent along with their broker can discuss the potential to market your property to the proper audience. Simply putting a yard sign in your front lawn and entering the listing in the computer is where some marketing effords end. For a historical home with fabulous unobstructed views of Lake Michigan being so unique, many appraisers have a difficult time pricing your property appropriately. In today's marketplace there aren't many buyers looking for such a unique investment, however they do exist and a good agent will know how to find them.

I agree, the issue arrises when a mortgage is necessary to complete the transaction and the bank appraisal falls short of the agreed upon purchase price. If the buyer is truly interested, they will need to come up with the difference in cash.

Also remember to stage your home appropriately and make all necessary repairs prior to any showings.
0 votes Thank Flag Link Fri May 28, 2010
Many questions arise with historic properties.

Is it a historical property, or a property in a historic district? Not all properties within a particular historic district are in fact “Historical”. A historic property is a property that is designated, or has been determined eligible for designation, at the local, state, or federal level. The property, or properties, must either be important for representing broad patterns of history, associated with the life of a historically important person, or for archeological contributions. More simply put – associated with a historical person, place or event.

Did you, or your listing agent, contact an appraiser experienced with historic properties/districts prior to listing the property (to have it appraised for the historic significance of the property and/or district) and determining the listing price? By doing so, you would have supporting evidence/documentation for your listing price and counter offer, and to dispute an unrealistic buyer's offer. How competent, or experienced, is your agent (if you have one) with selling historic properties?

Was the buyers offer based on an actual appraisal or a cma from their agent? As with any appraisal, valid usable comps would be other historic properties, or properties in other historic districts, which may be in other market areas, cities, counties, or even other states, depending on the historic significance of the property, or property in a district, being appraised. Finding valid usable comps may also require going back several years in time. Also, justifiable adjustments for characteristic differences, historic differences, and time adjustments would be required.

What you can do at this time, is have a copy of the buyers appraisal reviewed for accuracy and USPAP compliance, or have your property appraised for a counter offer.
0 votes Thank Flag Link Fri May 28, 2010
As far as the appraisal goes,if buyer wants to make up difference between appraised value and selling price,that is, if they need bank financing,then all is well.My broker has taught her agents a well versed saying."Price of the home is what a buyer is willing to pay for it"Even though your home may not appraise,a buyer may be willing to pay for it!!How are you going to find that price?Obviously comparables are important.You and your realtor may make up a list that you feel may add more or less value to your home compared to the other ones in your area.Price it right,and you should have a sale without giving your home away!
0 votes Thank Flag Link Fri May 28, 2010
Ultimately, you control the listing price of your home. The issue arises when the buyer requires financing. The bank will use the closest comparable they can, which might be of a different type of house and of a different price range. This might create a situation in which the buyer must bring cash to the closing to 'make up' the difference between the loan amount and the actual sales price, or you might have to lower the asking price. With such a unique home, the best thing to do is list the house for what you feel is a fair price and see if there is any interest during the first 30-60 days. You can then determine if a price change is needed. A good realor can help you evaluate your options.
0 votes Thank Flag Link Thu May 27, 2010
Are you referring to the Allendale area?
0 votes Thank Flag Link Thu May 27, 2010
As the seller you have the option to accept or reject or counter the offer. My suggestion is to see how much activity you get at your asking price. If there isn't enough activity or if you are only getting low offers you may want to consider reducing your asking price. It really depends on how motivated you are to sell.
0 votes Thank Flag Link Thu May 27, 2010
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