Thanks Missy and Todd. I have better comps that I found through Zillow, Trulia, and City of AA tax assessment site. I could have challenged the appraisal and the buyer was even willing to get another one. But they were also starting to look at other houses and their loan was only locked to March 10. So time was of the essence and I decided to take my bird in hand. The closing is March 7.
Incidentally, I have already moved into another house in AA. So I was paying two mortgages and that led also to my time-sensitive decision. Thanks again for your input. - Fri Feb 29 2008, 17:17
Thanks for all your answers. I really appreciate it. I am selling the house by owner so I don't have an agent (sorry!). I do have a copy of the appraisal though. The appraiser is from Brooklyn, MI and in my humble opinion, used rather poor comps. My house is in the Pomona-Miller neighborhood, about 3/4 mile from Main Street, walking distance to downtown, Mack School, West Park, Pomona-Mixtwood Park, Big City Bakery, Knight's Market, and the YMCA. 3 out of the 5 comps used by the appraiser were houses far West of Newport Road and 2 out of 5 were in the Maple/Dexter neighborhood (S. Circle and Carbeck area). I think everyone with knowledge of AA home prices knows that as you move further West of Main, house prices tend to decline (all other things being equal) because they are not considered walking distance to town. The comps in those neighborhoods were of similar size and qualities and sold for around $205K. My house has a handful of new and updated features and the inspection passed with flying colors. To say that this house is worth the same as these others is just a poor appraisal in my opinion. The appraiser seemed to give no credence to "proximity" value. To me, this is like giving two identical houses the same prices, even though one is one a lake.
Anyway, not to bore you or keep you in suspense. I decided to sell it for $205K. I believe I could find another buyer with cash to put down and/or better financing, but that could take months and it might not happen at all. If I took it off the market and rented it for a few years, I might sell it then for $230K, but in the end, I'm not gaining that much over 3-5 years. There were too many unknowns so I'm taking the plunge.
As to the question of whether a buyer would pay above the appraisal price, I think this is moot since the appraisal was so poor. I think a *local* appraiser would give it another $10K in appraised value but this buyer didn't have time to wait (although he was willing to get another appraisal).
I hope I'm not being one of those sellers who just can't admit his home's real value. I always thought your home/car/whatever is worth what a buyer is willing to pay. I had a buyer willing to pay my price, but that maxim didn't hold up in this market. The bank, in its extremely bruised and cautious state, made the decision for us. - Thu Feb 28 2008, 18:29
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