Palos Verdes Lifestyle - Norma Toering 310-493-8333

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Those Calls We Hate to Make

Today I sent a text message to an out-of-town seller.  I cringed as I typed the words and I knew she would be upset when she read it.  Procrastination was not an option.  The appraisal arrived and the purchase price exceeded the appraised value by 2.5%.

My seller's home showcased new hardwood floors, new granite and stainless kitchen and three remodeled bathrooms.  It is gorgeous head to toe.  The comps the appraiser used were so, so and included a short sale with missing appliances, a 1970 something original kitchen and similar baths.  The condition of all, including my client's, were rated the same,  "Average." 

The thousands of dollars my client spent upgrading her townhouse in 2008 rewarded her with enjoyment and it was a great selling feature.  However, it held no weight with the appraiser.  I'm sure we will be able to negotiate and move forward with the transaction.  The buyers will reap the reward of purchasing a remodeled unit at near original condition price, and my seller will move forward with her up-leg purchase.  The real estate world continues to turn--the challenge is to navigate the twists and turns, the negative and the positive with cooperation, education and resolution.

 

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

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Norma Toering - Real Estate BrokerNorma Toering & Team
Broker-Owner - Charlemagne International Properties
310.493.8333 - Email Norma

 

 

 

 

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Based on information from the Association of REALTORS®/Multiple Listing as of the initial date of this article/blog publication and /or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.

Comments

Norma, there was a recent post about filing a formal complaint against the appraiser - a personal complaint - with the state licensing agency.  That would get his attention.

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 8 years ago

Hi Norma-

How disappointing for both you and for the Seller!  It is a blessing that the gap is not larger and that she can still move forward with her plans.

--Sara in San Antonio

Posted by Sara Woolford & Steve Golson, ALHS (iTexas Realty Co.) over 8 years ago

You are absolutely right, sometimes you have to just dig your heels in and look for a solution. If it's buried under a tree somewhere so be it...as long as you find it. I had the same thing happen a couple of weeks ago on the buyer's side. We offered 13k more than what the appraisal came in at. The seller moved the price down, we closed on time, and everyone still came away ok. Nature of the business. Good post.

Posted by Nathan Tutas, Your Central Florida Real Estate Expert (Tutas Towne Realty, Inc.) over 8 years ago

It could be worth hiring your own appraiser.  Make sure he uses proper comps and send it to the buyers agent and make sure it gets sent to the Bank.  This is an issue that I cross early in the deal. 

If the home being sold is not a foreclosedd one or a short sale...I tell the buyers agents to make sure that the appraiser uses NON-FORECLOSED OR SHORT SALE COMPS!   I will even send proper MLS numbers for comps for the appraiser if needed!

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) over 8 years ago

I hope you get it figured out. The days when appraisals supported the selling price, now matter what it was, are over. Good Luck! Now go earn your commission!

Posted by Wayne B. Pruner, Tigard Oregon Homes for Sale, Realtor, GRI (Oregon First) over 8 years ago

I have to tell you - you have painted a great picture of the service.  Wish the best for your seller and you.

Posted by Charlottesville Choice Homes (Keller Williams Realty) over 8 years ago

This is one of the problems we are facing with the appraisers, when they include distressed properties as a comps for upgraded and updated homes. Can you ask for the second opinion from another appraiser? Hope, it will work out.

Posted by Irina Riley, GRI, SFR, CNE, e-PRO, SRES (American Dream Colorado) over 8 years ago

Pat - We are working it out as she drives back from Colorado--she was there to pick up her daughter from college and have some mother-daughter fun.  I'm sure my little text message did not add to the fun factor!

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 8 years ago

Sara - You're right, it could have been much worse--we'll work with it.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 8 years ago

Nathan - Real estate is all about solving the problems and finding solutions.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 8 years ago

Nathan - I doubt the appraiser viewed any of the sold comps.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 8 years ago

Wayne - I earn every commission--and I'm sure you do also.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 8 years ago

Thanks for the kind words, Sarasota Choice Homes!

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 8 years ago

Irina - Looks like it will work out with a little movement from both sides.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 8 years ago

Norma-- I hear this more and more.  The appraisers are not giving as much value to upgrades as one would wish.  It is still a challenging market.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 8 years ago

I really feel this, too, Norma for my sellers and buyers alike.  Appraisers in our area are gun shy.  So, not only are they low balling properties, this sets the tone for a buyer who is ready and able to pay what we all believe the property to be worth, yet makes buyers weary about the value after purchase and they're thought, "will it continue to slide"?  It's a challenging market, indeed, as Joan says.

Posted by Gail C. Harris, Reach the BEACH with Gail C. Harris (cell: 703.868 (Resource Network, LLC SFR, AHWD, ACRE, SMAR Board Director) over 8 years ago

Sadly, this is a common occurrence these days.  A "sure-thing" appraisal is a thing of the past.

Posted by Tom Boos, Providing the very best of service to Sellers and (Sine & Monaghan Realtors, Real Living) over 8 years ago

That is such an unfortunate situation, and unfortunately not uncommon these days.  I have a deal that imploded based on a bad appriasal.

Posted by Janna Scharf, Coeur d'Alene Idaho Real Estate Expert (Keller Williams Realty Coeur d'Alene) over 8 years ago

I just had a deal die because of the appraisal.  I truly believe the appraiser did not do his job on this home at all.  I looked at it from every angle and it was just plain bad.  The comps he used were not comparable at all!!!  Not in location, not in condition, nothing.  The deal fell apart, and luckily we got into another escrow, but it did cost my buyer over $700 for an appraisal and home inspection, that sucked!!!

Posted by Kim Darling, CRS,GRI, "Your Home Team" Fresno/Clovis Homes (Keller Williams Westland Realty BRE# 01864461) over 8 years ago

It happens so much more than we'd like.  I am sorry for your seller because that is never a fun thing to have happen, when your heart and mind are set on the price that you have agreed to. 

Posted by Wendy Rich-Soto, Realtor Strategize, Stage, Sell, Owner of SellingLASouthBay.com @ the WRichTeam (Keller Williams Realty, LA Harbor) over 8 years ago

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