Dear Michael: We are in the counter stages of an offer we put on a house. The seller and I are not agreeing on the price. The difference is about $25,000. What should we do? We really love this house…
Answer: This is a personal choice and your financial commitment. I cannot decide for you whether you should or should not buy this house. If you have been searching for a home for a long time and this is the one, then it is up to you to decide if $25,000 is worth going forward with the purchase. Buyers and sellers can sometimes get emotional and cannot come to an agreement on price and other matters related to the purchase agreement. A general rule is that for every additional $1,000 borrowed you should add approximately $5 to your mortgage payment. So you would have to pay an extra $125 a month if you should decide to agree to the seller’s demands. Emotions can sometimes get in the way and regrettably no-one wins. I am not assuming that this is your situation, but just pointing out a fact that I sometime see!
Dear Michael: We have submitted two offers with a contingency to close escrow on our current condo. We have had no luck. Both sellers accepted other offers as we have been in multiple both times. What can we do to get an accepted offer?
Answer: You can’t blame the seller for choosing the offer that has no “contingency of sale of buyer’s property”. This is a sellers’ market with many multiple offers. You may consider upping your offering price to distance yourself from the other offers. Once the buyer on your condo has removed all of his/her contingencies you will be in a much better position. We are seeing an increasing number of multiple offers on the lower end priced condos and homes. This is caused by lower interest rates on conforming loans along with consumer confidence. Stay persistent and don’t give up, you have nothing to lose by submitting offers. Good luck!
Dear Michael: I am refinancing my home but the appraised value came in at $50,000 less then the comparables. How can the appraiser be so off? My Realtor also agreed that the appraised value was to low
Answer: The first thing to note about an appraisal on a refinance is that it is not necessarily reflective of where your property will sell on the open market, but rather a snapshot of value based on one person’s professional opinion. Also, appraisers are less likely to value the extras/upgrades that your property offers and more likely to go with recent comparables. This can be a problem, especially if recent comps are hard to come by. If you are questioning the value on an appraisal, start by gathering comps that you think are more reflective of your property value. Compare your comps with the ones in the appraisal report by checking specifically the most recent ones. If you still think that the appraiser omitted a key comp, approach your loan officer with the comps and ask that he/she present it to the appraiser. While most banks do not like to revisit appraisals, most if not all, are reasonable and should consider new information if in fact it is relevant.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com