Real estate General topic

[paulsharvey]

I'd take a look at the comps to see how comparable they really are.

Fair at best? I do not believe the took the pond/lake access into account (non of the comps had water access, or a correction value for it), but I'll admit, it's pretty limited water access. These kind of properties aren't available by the dozens within a 10 mile radius, so it does make for a hard comparison.

I'm Not saying the appraisal is wrong either; and my semi educated, gut feeling, is at $400k, it would have sold already. It also tells me, that Many people asking $450-500 on ads, are Not closing at those prices, and must be lowering significantly.

As a example, the two closest comp, one was around $369 and another was close to $480.

 

[JasperFrank]

Five miles just out side the Urban Expansion Plan.

 

[paulsharvey]

I did tell my wife last night, maybe we should have went with a mortage company more specialized in rural acreage? One we are using has good rates, fair closing costs, ect, but they are just a general mortgage outfit.

 

[paulsharvey]

So, I would hate to navigate all this without a buyers agent. No idea how much work they do on a typical home, but she has had to get info many times from sellers agent that mortage company wanted.

 

[2manyrocks]

Fair at best? I do not believe the took the pond/lake access into account (non of the comps had water access, or a correction value for it), but I'll admit, it's pretty limited water access. These kind of properties aren't available by the dozens within a 10 mile radius, so it does make for a hard comparison.

I'm Not saying the appraisal is wrong either; and my semi educated, gut feeling, is at $400k, it would have sold already. It also tells me, that Many people asking $450-500 on ads, are Not closing at those prices, and must be lowering significantly.

As a example, the two closest comp, one was around $369 and another was close to $480.

I think you can search Refin or one of the other sites for actual closed sales prices yourself, and I'm pretty certain your agent should be able to get this information for you if you can't find it. My understanding the trend in the $400k price range is down, but the median home price is being reported as increasing because of continued sales of higher priced properties to people with cash not relying on as much financing. So look at the actual recent sales in your area to see what's really happening.

 

[ultrarunner]

No matter the field, it's hard to find competent help. Most people suck at their job.

and just when all the kinks get worked out and the organization runs like a well oiled machine key people quit, retire, transfer, etc…

 

[2manyrocks]

Or higher ups decide to "right size."

 

[ultrarunner]

Top appraiser who specialized in unusual and difficult properties to appraise said conventional appraising is flawed from the start and explained why.

Appraisers rely on comps in determining values but comps are homes that have sold and no longer available to purchase…

This is a problem in both rising and declining markets.

If prices are rising what good is it looking at homes not available… the true measure is comparing what’s active on the market…. makes sense to me.

When I bought moms place as-is the Estate Lawyer ordered an appraisal who was most thorough and came up with a number…

The family rejected it saying spending a 100k would generate at least 200k additional in value as everything is very much 1950’s.

Family said if I bought it I would have to be 75k over appraised value and of course no selling costs such as commission paid out…

 

[ericm979]

Once when we refinanced we found that the lender was using an appraiser from down in the city who was entirely unfamiliar with rural properties; you can't look in the one-mile-radius "neighborhood" because there's like a handful of properties perhaps one of which has changed hands in years.

We had that problem when we bought our place in California 27 years ago. They missed some stuff that we had to get corrected.

The appraiser who did the property in Oregon we bough recently did a really through job. The number didn't quite match the selling price but the bank said its close enough.

 

[paulsharvey]

Even if someone can afford to make their mortgage payments, the loan will go into default if they can't keep the property insured. Lenders used to have the option of force placing coverage to only protect the lender's mortgage balance, but this didn't protect the homeowner's equity and the coverage was extremely expensive. I've been wondering what lenders are currently doing in states like California and Florida where insurance companies have stopped writing policies on a broad scale affecting so many instead of the lack of coverage formerly mostly being a matter of someone not paying their insurance bill on time or being seen as too risky to carry?

In Florida, there is Citizens insurance, which is basically min legal insurance that is a last resort. It's somehow affiliated with the state, and it doesn't cover replacement, or liability, or possessions. Couple years ago, we had them, and it's really just protecting the mortage company. If I remember right, they basically insured the remaining balance of the mortage, minus land value, minus deductible, minus hurricane deductible. So, it would have covered like $27,000, before the $10k deductible on current house.

I have been told about some beach front places needing land insurance in addition to homeowners; incase the lot/parcel itself is no longer build able, do to erosion.

 

[WinterDeere]

So, I would hate to navigate all this without a buyers agent. No idea how much work they do on a typical home, but she has had to get info many times from sellers agent that mortage company wanted.

Glad you made the right decision for you. But just to clarify my prior argument, when operating under dual agency, the seller's agent is your buyer's agent. So, that process of "getting info from sellers agent" would be even easier and quicker, as there would be no need for one agent to retrieve it from the other.

There's no right or wrong, and it may be that in your case, this was the better choice. In our case, shopping $1M properties, I just didn't feel like handing over an extra $30k to a second agent, when my real estate attorney could do the same thing and more for $2k. By "more", I mean that in our case the attorney got some expired zoning restrictions dropped from the deed, and also caught and fixed some incorrectly-filed surveys that created a conflict over the property boundaries in county records.

 

[paulsharvey]

It's been a Long time, but I did take a real estate class like 20-22 years ago, and it was one of the Key principles that it was a conflict of interest to represent both sides. Sure, you could absolutely get the listing, and sell; but you did Not represent the buyer. Yes, you had certain ethical lines; but you represented the interests of the seller. You couldn't hide certain things, you had to disclose known defects, ect.

I do think to some degree, the way a buyers agent works is kinda a conflict of intrest too; meaning the higher the sale price, the better for your intrest, but a low sale price is in the intrest of the buyer.

Things have changed a Lot. When you called a real estate agency, they basically could show you their listing's, and anything on the MLRS. If they sold their own listing's, that was 7% to them; if they sold from the MLRS, they got 3.5% and listing agency got 3.5%. Back then, a buyers agent wast really a thing. Sure, the agent still wanted to make a sale, or they didn't get paid, but they worked for the seller.

 

[paulsharvey]

Got a result from appraiser. He responded that the comparable the sellers agent sent were not valid. Although closer, they were in the neighboring county. So no change to the value. Not what I wanted to hear, but it is a result.

There is a Big difference between knowingly fianacing $13k over value, and paying $13k cash above value, for the privilege of financing the rest of it for 30 years.


Edit: this property's northern property line Is the county line, but I do somewhat agree that when you start comparing across the line, it might be apples vs oranges.

 

[paulsharvey]

Well, this is a tractor forum still, I think, so let's circle that back around. Happen to open FB Marketplace, and the very top item, a TYM 39hp cab. Hmm, is that the machine at sellers house. Yep, confirmed both b6 the equipment on the trailer, ready for sale, as well as the name.

It's frankly not a bad deal; $30k, TYM 394, 300 hrs, grapple, box blade, forks, bucket, disc, and bushhog, on a 30 ft equipment trailer. Not for me, but that's pretty reasonable with the extras. Oh, and it includes a hydralic log splitter too.View attachment 884304

 

[Jstpssng]

Well, this is a tractor forum still, I think, so let's circle that back around. Happen to open FB Marketplace, and the very top item, a TYM 39hp cab. Hmm, is that the machine at sellers house. Yep, confirmed both b6 the equipment on the trailer, ready for sale, as well as the name.

It's frankly not a bad deal; $30k, TYM 394, 300 hrs, grapple, box blade, forks, bucket, disc, and bushhog, on a 30 ft equipment trailer. Not for me, but that's pretty reasonable with the extras. Oh, and it includes a hydralic log splitter too.View attachment 884304

Talk about hijacking your own thread!!!
You are right, that'll make a pretty good deal for somebody.

 

[2manyrocks]

If the appraiser says it's $13k short, looks like the sellers and/or realtors might need to make more concessions to get the sale closed. What else can they do at this point if the appraiser isn't going to increase his appraisal?

 

[paulsharvey]

If the appraiser says it's $13k short, looks like the sellers and/or realtors might need to make more concessions to get the sale closed. What else can they do at this point if the appraiser isn't going to increase his appraisal?

It sounds like comes down to several options;
1) we fork out $13k in cash, and redo the paper work with a lower fianced amount to make mortgage company happy
2) they drop the price $13k, we redo paperwork and close at the lower ammount
3) something in the middle; like they come off the price by $10k, and we fork out $3k, redo paper work and close at lower number
4) everyone walks away; everyone spent some money, and everyone is mad
5) something creative I don't know about.

 

[2manyrocks]

With all the very recent stock market jitters, you'd think the sellers would be motivated to get this closed.

 

[paulsharvey]

With all the very recent stock market jitters, you'd think the sellers would be motivated to get this closed.

I saw in addition to the tractor and impliments, they are having an estate sale, with much of the furniture, misc tools, ect, that started Wednesday and runs through Saturday. All signs point to them actively finishing moving out as we speak/type. I told the wife, I think we don't offer any cash, if they are this far in, I could see them frustrated, but saying, fine, $13k less, and be done with it.

I also expect the real estate folks could pull a rabbit out of their butts, and come up with some solution I know nothing about.

 

[2manyrocks]

If there aren't any cash buyer offers, looks like everyone else would run into the same appraisal issue so isn't the seller faced with working out a deal at a lower price with you?