Posted by Gerald-NC on June 11, 2006 at 21:16:11:
Appraisal will come back at a “true” ARV. It could be $105k and then again it could $95k. What the lender would need if it comes in lower than your selling price is the buyer to put down the other amount left, or you take back a 2nd note on the left over amount.
They won’t come up to $105k just because someone is willing to pay that much. They be more lenient on their appraisal but they won’t go too far.
Good luck.
—NEED Advise-SELLING FOR FULL VALUE---- - Posted by Randy-06
Posted by Randy-06 on June 11, 2006 at 20:52:14:
I have a buyer willing to pay me $105,000 for my property. It needs a few repairs.
However, the home might not appraise for $100,000. My buyer will be getting a loan,FYI.
My questions, can I still sell for what my buyer is willing to pay($105,000) since he is getting a loan? Or will the appraisal come out to $105,000 since that is what my buyer is willing to pay. So im thinking $105,000 is market value.
Please, any comments or advise is very welcome.
Thanks
Re: —NEED Advise-SELLING FOR FULL VALUE---- - Posted by Joe
Posted by Joe on June 12, 2006 at 12:07:08:
It may depend on how shady the people involved are.
I pursued a lead on a house needing rehab. I estimated the current value at $520k. Some other person wanted this property really bad (dunno why, it was a crappy little house in a not-so-nice neighborhood … I think they were going to get a bunch of $$$ back under the table at closing). They wanted the purchase price to show as $620k. The 1st lender appraisal came in at $530k - just about spot on with what I said. So what did they do? Well … 2nd appraisal, 3rd appraisal, 4th appraisal (as well as new lenders) … it was the 4th or 5th try that finally gave them a number that they liked with a lender foolish enough to accept it.
However, a few $k difference really just comes down to negotiation most of the time.
Re: —NEED Advise-SELLING FOR FULL VALUE---- - Posted by Sailor
Posted by Sailor on June 11, 2006 at 22:03:10:
In 2005 I had a sale come in 5k short on appraisal, so the buyer had to come up w/the difference. However, in 2006 don’t be surprised if the buyer wants you to reduce the price to meet a low appraisal. Remember, negotiations aren’t ever over until closing, so learn your true market NOW. (I just had to reduce the price on some land 20k AFTER entering escrow.) Comps from even 3 months ago are no longer valid in some areas. Talk to the really smart RE folks in your area. Good luck!
Tye (who HATES being in escrow, & swore she wouldn’t do it again in 2006)