I don’t understand the reluctance to get the other buyers engaged … They may not pan out, they may come in with higher offers with no contingencies, who knows. The biggest point is that having other offers gives you tremendous leverage and negotiating power. You are already making concessions, which shows you are already in a “one-down” position, and, believe me, when the appraisal comes in low, you are going to be at a big disadvantage in negotiating with your buyers. The only way to counter that is to have credible alternatives lined up. That gets your negotiating power back to a level playing field.
Plus, for the new potential buyers, there is something psychologically appealing abt a house they probably can’t have. Get them hooked on the place now, if they are willing to come thru now.
Also, have you talked to lenders abt 80% loans on vacation homes for out if state buyers who will not be living in house as primary residence? I don’t know if that will be an issue or not but it is not the normal financing situation so there may be more stringent hoops.
I just performed my own informal appraisal analysis. There are three comparables with 2/1 and similar square footage that I can find (not counting extra building). These homes are in original condition with no view or minimal view from an exterior deck only. These comps support a value around $800,000. If the appraiser can find additional value from superior views, superior condition and the extra building and bathroom we might be OK. But, some of them are about 6-7 months old because there just has been no inventory sold since then.
I also hope you’ll push your RE agent to hold an Open House this weekend. However much you may like her or have felt well served by her in the past, she does not appear to have your best interests at heart right now. She should not be concerned about getting paid by both sides, but should be working to get you the best deal ASAP. I don’t believe it’s too late to add an Open House notification to your listing today. I’d want to do an Open House on both Saturday and Sunday afternoon since time is of the essence.
We have scheduled showings with both of the buyers through their agents for Saturday 1pm. No answers from multiple calls into lender to see if the appraisal showed up. Not returning my agent’s calls - guess they are too busy.
I have never seen an Open House scheduled for a property that is Pending in the MLS. We might get some neighbors or people driving by, but agents representing buyers in the area are going to be curious about what is going on. There would be a lot of calls to my listing agent that would be hard to answer. I don’t want it to divulge that we ‘think’ our deal ‘might’ fall apart due to the fault of the property. It would be OK if we thought it might fall apart because buyers can’t get their loan or something.
The office and second bath annex has its own entry door from the courtyard. It shares a common wall with the house but not direct access. There was extensive discussion of this way back in the thread.
All we know at this point is that the appraisal was turned into the lender and was returned as not acceptable - missing information. It came in at value in the original submission. Nobody is telling us when the ‘corrected’ appraisal will be into the lender. After arriving at the lender it has to go through review again (and probably pretty thorough review since they rejected it the first time).
So, there is no way that Buyers will release contingency by the deadline. Here comes an ‘Extension Request’
I am sorry that you have to go thru this appraisal, perhaps you should take a lower all cash offer and run the next time.?
I was always concerned that homes have converted garage and calculated it in the square footage. Now I am learning some thing new: separate units that is not connected to the main body in a SFR cannot be accounted for as part of the sqft. But what about in-law units with a separate entry?
cb, hopefully one of your prospective buyers tomorrow will make an offer and you can tell the original prospective buyer that no extensions are possible.
Separate in law units have same issue. It all depends on the appraiser I guess. But my research confirms its not supposed to be appraised as main living area. But the separate space is assigned a value.
the City considers it as living space, the tax assessor includes it and it can be included in a MLS sales listing.
Unfortunately, there are no All Cash offers to accept. All cash from owner occupant buyers were prevelant over last 2 years but have dried up this year a bit. Except for investors buying poor condition stuff. Lots of those!
I’d invite additional offers, but I see no reason to do an open house. Very few buyers come through an open house, mostly lookey-lous. Probably more helpful for the real estate agent than the home seller.