2. if you're on your own, then deal with it on your own thereby losing $1000s. Or grab an erudite agent doing A LOT of busness and pay them a retainer fee of $1000 for the sake of saving you $5000 in the end.
Blows my mind that consumers want our professional advice when they are already on their own or with another agent. It's an insult to an excellent agent's value as a consultant. Period.
Sounds like the advice you are getting from YOUR agent is USELESS. It is foolish to order an appraisal before you have total approval from the bank. Furthermore, there are some who would consider this trespassing since your appraiser has no right to go into the property. On top of that..if you were to do an FHA appraisal..without the sellers consent..it can really open up a can of worms. The FHA appraisal will stay with the property for 6 months! Now who would get in trouble for that?
Lastly, as Jay (s) mentions and as Jay (H) applauds..it's amazing that people come to this forum to get these types of questions answered. You obviously lack confidence in your agent and are seeking advice here...soo your question get's answered by a professional and your agent still gets paid. Think about this...how many other areas of your contract do you think are getting ill advised...GUARANTEED you are losing money elsewhere than simply your $$ you are throwing away between 275 or 285k. What is the value YOUR agent is bringing? OR..if you are going it alone (unrepresented) are you saving the 2.5%-3% commission...NO WAY.
I hope yourself and others learn something here. It costs you nothing to use a well qualified professional Realtor..But it will cost you plenty if you don't!
Best of luck and Merry Christmas.
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
The reality of an appraisal is that one could have the same property appraised by three different appraisors and arrive a three very different values. We have seen multiple appraisals be $50,000 to $60,000 apart on a home in the $500,000 price range.
Our recommendation is to put your agent to work reviewing recently sold similar homes from the same general area and use this information to substantiate your counter offer. If you expect the bank to move on an appraisal number it's very important to provide them with information that casts a shadow on their number.
As a real estate investor/buyer I don't care what the bank has in the deal or what the apprasial says we are in a declining market across thye US. The only thing that counts is waht is it worth to me.
Bill Carey, Broker/Realtor
Bill.Carey@HendersonProperties.com l http://www.HendersonProperties.com
Charlotte's Premier Real Estate Company
Please see my blog with a complete list of advice and tips on buying a short sale.
What your agent would do next is submit the notice to remove the appraisal contingency - it has several options on it - usually you would ask the seller to sell for the price of the appraisal. I have been in this situation where BOA was the bank in charge of the third party approval and they didn't care that the buyer's bank came up with a lower value - they closed the short sale case.
I am guessing the negotiator at the bank is not aware of the appraisal since we ordered it after the contract was ratified and submitted to BOA for approval.
Thanks everyone for the quick responses.
If you are talking about the tax assessment being $275K - this would be irrelevant to the market value. You have to decide on a reasonable price for the property based on other similar properties that were sold in the same neighborhood during the past 90 days.
Regarding what you should counter with, it depends on the bank. Some banks will not give you an opportunity to counter or negotiate. Bank of America used to be notorious for this but I have heard they have been better since they got their new software system. They used to just close the case if the buyer countered and then it would take another 3-5 months to get another approval.
Hope that helps. There is a lot that we don't know here and this is a complex question - the answer could vary based on a lot of factors. If you have an agent, you should have an in-depth discussion with him/her on the pros and cons of your different options.