Most buyers want a market analysis to determine the value of the house they want to buy. The analysis looks at similar sold properties and properties that are actively for sale or pending sale. We adjust for square footage, number of bedrooms and baths, size of the lot, condition of the property and more. Sometimes the property is priced just right, sometimes it is underpriced (really!) and sometimes -- much of the time -- it is overpriced.
We bought a slightly overpriced house because we fell in love with it, were going to live here for many years to come, were buying in a down market, and saw the opportunity ahead of us to make a profit in the future. The other reason? I said "I gotta have it!"
When we walked in the front door, we knew this was the one. The house had great character from the warm color of the aged hardwood floors, to the fir woodwork, glass door knobs, and wainscoting. We bought the house and are still living in it. We LOVE it!
We understand that most buyers do not want to overpay for a house, and your mortgage company wants to loan you money on the value of the house. But if you are not sure if the house is worth the asking price but you "gotta have it", let the appraiser determine the value. Awhile ago, appraisals seemed to come in exactly at the purchase price, but not so much anymore. Appraisers have to justfy their appraised value to the banks. Then the underwriters get a chance to review the appraisal. Usually, if an appraisal comes in lower than the purchase price, the sellers will lower the sales price to meet the appraised value.
So, get a market analysis, discuss comparables with your REALTOR, and decide on the price that works FOR YOU. If there is an "I gotta have it" factor, so be it.
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