As a seller, if the buyer asks to see the appraisal I had done, am I obligated to show it..selling on land contract?

Asked by Mjquigley, Fowlerville, MI Mon Sep 26, 2011

Had an appraisal done on my mothers home (she passed 2 years ago), looking to sell, potentially on a land contract. Had an appraisal done because I didn't want to overcharge someone, but wanted to have an idea of what to ask. Appraisal was $100,00...realtor said ask $112, 900.00..the potential buyer (my bosses son) wants to see the appraisal; what do I do?

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7
Bob McClure, Other Pro, Walled Lake, MI
Wed Sep 28, 2011
good morning......i would be glad to offer some advice.
best regards.
bob mcclure
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Mjquigley, Home Seller, Fowlerville, MI
Tue Sep 27, 2011
I appreciate all the feedback; it has been really helpful. I do need to clarify; I just had the appraisal done a week ago; so it's a recent appraisal; unfortunately, comps are mixed with a short sale, foreclosure and regular sale....thank you all for you insight.
0 votes
allan erps,A…, Agent, Pearl River, NY
Tue Sep 27, 2011
If you are satisfied with selling the home at $100,000(apprasial of 2 years ago is really not relevant anyway) then show him the appraisal. Being your bosses son I do not think it is the time to withhold valuable information. Understand having an appraisal done for the estate and one done by a Bank will almost always come up with a different number. If you agree upon a price then see what the Bank appraisal is and go from there.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Tue Sep 27, 2011
Quigley,
There are many purposes for an appraisal.
One purpose may be to buy-out another party holding title. (round numbers down)
Another purpose may be to secure equity or refinance. (round numbers up)
Yet another may be to determine market value to sell a home. (round numbers up)

You own the appraisal and you choose with whom you will and will not share the data. An appraisal over two years old, (If not used for buy-out) may prove beneficial to your cause. If you choose to share the data, it may be beneficial to you to have the buyer agree to a predetermined outcome. It is best to pass on sharing the appraisal data due to lapsed time or purpose conflict.
0 votes
Bill Eckler, Agent, Venice, FL
Tue Sep 27, 2011
Mj,

An appraisal is the sole property of the party that pays for the service and it's up to that individual as to who it gets shared with.

Taking this to the other extreme, by not being willing to share this information with a future buyer may give the impressing of having something to hide.......this could be counter productive.

Here's a unique thought....be honest and up front explaining that your asking price was at the recommendation of the listing agent and see where this leads. There's really nothing to hide....only the fact that the buyer may wish to negotiate the price downward.

If you can justify asking more than the appraised amount the buyer may be willing to accept this and move forward....recent improvements, legal fees, comps to prove the appraisal was a low one or that the market has changed sinc the appraisal was done, etc.

You are responsible for nothing but taking professional advice provided by your realtor....don't fret, be honest and open and negotiate an acceptable price that gets the job done.

Good luck,

Bill
0 votes
Derek Bauer, Agent, South Lyon, MI
Tue Sep 27, 2011
The appraisal industry is in such extremes right now that you could have another appraisal done and it be 10% or more different. Appraisals are accepted as gospel ... when it really is a moving target nowadays. You are not obligated to show him ... but in it being your boss' son and all, I suppose you may want to keep the peace...

In addition, buyers typically pay a premium in land contract transactions as there is more risk ... thus possibly more reward for the seller. If I owned a property and were selling it on a land contract, I wouldn't sell it for anything less then a 10% or so premium ...
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Bill Park, , Livingston County, MI
Mon Sep 26, 2011
Out of curiosity, would you take $100,000? If you would there is no reason not to show him the appraisal in my opinion. I always like to work with as much disclosure as logical as long as it is honest. With a land contract, which we don't see in the market place that much anymore there is a saying, your price, my terms, your terms my price. In otherwords. If you charged 6% interest, took a 10% down payment on $100,000 selling price, you would have $10,000 in pocket. If that was amortized over 30 years the principle and interest per month to you would be approximately $540.00 per month. If you were offering a balloon payoff in say 7 years, the prinicple reduction would have been subtracted from the $90,000 principle and the interest would be "income" . It would take an amortization table for us to figure that out and I don't have one with me tonight. If you want to talk about it, be glad to do that. Of course, you would want to make sure that the contract is written so if you have to go to court to get your property back because they are not paying for it, needs to be carefully written. The object then is to win and make them pay for your collection costs too. Sometimes it is like getting blood from a turnup. That is one of the problems with a land contract, when they go sour, it is a mess. And you eventually get it back but not in the same shape as when you sold it. Good Luck.
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