Mark - we don't know what the seller is thinking, we can only imagine. Rather than rely on our imaginations, ask the listing agent what the seller's rationale is. Go to the source.
All the best,
Appraisers do not like this, but they don't know value. Buyers determine value. Appraisers give lenders an opinion of the value of the collateral backing the loan. It is an opinion, an educated opinion, appraisers are smart people, but I wouldn't let an appraiser change my opinion of value. If I was willing to pay, say, $750,000 for something - I wouldn't care what an appraiser thought, although in order to get a loan, I have to submit to the process of having an appraiser tell the lender what they think the property is worth.
Ultimately, a property is worth what a buyer is willing to pay for it, and if you lose out to another offer, that will tell you what the value of the property is.
Thank you for the "best answer," and all the best!
Merry Christmas and Happy New Year to all.
We get this: â€œIf you are not currently working with a buyer's agent, consider working with one (like myself) as they can explain scenarios like this to you. A buyer's agent's commission comes out of the sale so it can only benefit you to work with one and have an agent on your side.â€
Well, the contradictions are pretty funny. But how on earth do you think that you can provide any clarity as the buyerâ€™s agent. And what, pray tell, would be the benefit that you â€“or- any other buyers agent could provide? I see the stellar advice is flowing. I am most positive that phone call is going to be a cluster freak of sales gibberish.
It burns my butt to see such responses that reflect so poorly on the real estate profession.
The seller can set his own rules. He likely knows something that he is not disclosing with you.
My guess would be that he may be asking for the buyer to have 25% or more in cash, not necessarily downpayment. One possible reason for this is that your assumption may be right that the unit is not worth as much as listed. If you turn in an offer at list price and it gets accepted for instance, and you go through the mortgage lender and they send their appraiser... the appraiser may say, this unit is worth $10,000 less than the offer price. The mortgage lender will not lend you the $10,000.
In this case, the buyer can choose to continue (your lawyer should explain this to you and have this as a contingency on a sale) but this would mean the buyer pays the extra $10,000 in cash on top of the 20% downpayment to make the accepted offer work.
I may not be explaining this well in writing. If you need to chat over the phone regarding this, please feel free to give me a call. If you are not currently working with a buyer's agent, consider working with one (like myself) as they can explain scenarios like this to you. A buyer's agent's commission comes out of the sale so it can only benefit you to work with one and have an agent on your side.
Karen Cheung | 917.334.9544 | email@example.com
How do you know the unit is overpriced, is that your personal opinion? Who are you working with, the listing agent? if your offer does become accepted under the sellers terms, you don't have to worry because the lender won't finance it although you would have wasted some money and time along the way. So if in doubt, find another unit.