www.ODAppraise.com
News Flash!
Sellers' Markets and Buyers' Markets are basically a myth. It's really more like a Lender's Market. Don't believe it? Here is a ficticious example compiled from real-life stories:
Sellers bought the house in 2005 for $300,000 from previous owners who paid $150,000. Sellers knows that the neigbors sold the same floorplan as theirs last year for $450,000. Sellers understands that the market has softened, but they did extensive upgrades and figure they should sell for $400,000.
Listing Agent runs comps from most recent sales, Factors in what is currently on the market and what is pending, taking into account the upgrades on the subject house. The Listing Agent determines that the most realistic list price would be $325,000.
Sellers insist that they start with a list price of $375,000.
House sits on the market for 180 days.
Sellers, in desperation, drop the price to $350,000.
Buyer is pre-approved by their Lender up to $350,000 and they make an offer of $350,000 with no contingencies.
Sellers accept the offer because they have transferred to another state and have already bought another house.
Buyer's Lender sends their Appraiser out during the 30 day escrow period and the house appraises for $325,000. Seller never ordered their own appraisal from a certified professional appraiser, so they have no ammunition to refute the Lender's Appraisal.
The Buyer now has the option of coming up with $25,000 out-of-pocket or walking away from the deal.
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