Q: A two-year-old appraisal is 13,000 dollars less than what the sale price is. The seller won?t cover closing costs and wants full asking price. Is it advisable to continue with the offer or abandon?
?Anonymous, Janesville, WI
A: A two-year-old appraisal is VERY OLD in this market. Three to six months is a more accurate estimate of a home?s value. Seller doesn?t have to cover closing cost, especially if your offer is already lower than what they?re asking, go for one or the other. Either you ask for closing cost and offer full price or don?t ask for closing cost credit but and ask him to lower his price. Make a second attempt but if the seller is too resistant then give him time to rethink things and try again with a whole new offer.
Maria Jeantet is a Realtor? with Coldwell Banker C & C Properties in Redding, CA
A: It sounds like you should walk away from this property.
An appraisal that is two years old is no longer valid. You cannot use that appraisal for the current market value of the property.
You can ask a local Realtor or visit a local Title Company to get a list of ?Who Pays for What? in your area. You need to know what is ?typical? in your county. Which closing costs are typically paid by the buyer versus the seller? You want to know if you are asking for something that is standard or unique. Get the list, so you know.
This is a buyer?s market. That means, there are many more sellers than buyers. Lots of people are trying to sell and not many people have money to buy. Sellers are not in a position to be demanding. Buyers are.
You need to know the value of the house. The best indicator of the value of the house, is the price similar homes sold for in the neighborhood recently. SOLD prices are what counts when it comes to purchase price. Don?t give much weight to asking prices, especially when the seller is not represented by an agent. People who sell their own homes are called ?For Sale By Owner? and they typically do not know the current market value of their homes, nor do they know the laws and rules around selling properties. Additionally, it is illegal for a person who is not an attorney or real estate agent to sell any real estate that is not their own property.
I?m assuming you are buying without the help of a real estate professional. I have to strongly advise you to get a Realtor. As a buyer, it is FREE for you. It costs you nothing to have your very own Realtor. There is every reason to get your own Realtor to represent you. I am happy to refer you to a good local Realtor.
I hope this information answers your questions and is helpful.
Denise Shur is a Realtor? with 1:1 Realty in San Jose, CA.
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