After canvassing all of the other agents who have been through the property, we are not getting any solid replies. So, we are drafting our counter offer. I am countering at my bottom line pricing, plus some terms that we need. We have armed ourselves with the closest (geographically) 4 bedroom comps and I have created a detailed spreadsheet that is exactly how a bank appraiser would add/subtract value, based on each comparable and it’s charateristics.
We are trying to emphasize that views add a lot of subjective value - the buyer’s agent comes from an area where views are not a significant factor in property values, location is. Our property does not exactly have the rock star location, based on property values, but it has the rock star views that more than make up for it’s slightly less desireable location. It’s hard to get appraisers, or agents from other areas, to understand this.
The average price of the comparables is $990,000 and our property comes out to a value of $1,042,000 using the standard bank appraiser valuation technique. Of course, this is all based on which comparables you choose for the analysis. For example, if an appraiser selected 4 homes that are much smaller in size, less bedrooms and no view, the result could turn out completely different. I insisted on using comparable homes of similar size, at least 4 bedrooms, and completely updated. We adjusted up for unobstructable views and down for one car garage.
I was contemplating whether to adjust downward for ‘useable yard’, but then realized that we technically have a 1/4 acre lot which is twice as large as each comparable. So, size of lot balances out ‘useable’ portion of lot (at least it does in a bank appraiser’s mind).
This is going back to the buyer’s agent in about 30 minutes so I will keep you updated.
What are you countering with? Your estimated appraisal is more in line with your original asking price. What additional verbiage are you putting in your counter? Can you make a counter contingent upon a closing date within 21 days? In NorCal, when my DS was buying, 21 days was an expected closing (or sooner).
Since they are cash… closing 17 days
Release of inspection contingency 14 days
No appraisal contingency (makes no sense anyway)
No Home Warranty (my opinion is, if buyers really care about this, the buyer’s agent should purchase it for them)
My title company (which I have to do anyways because they are holding the title) and my escrow company
Don’t want to talk about exact pricing right now - we are just illustrating to them that they are getting a deal, based on comps, even at my counter price
If someone is getting a loan through a bank, it’s unrealistic to hope that they will close in less than 30 days. But an all cash offer needs to provide a fast closing to make their offer more attractive. They had 30 days in original offer. At first I thought it was because they needed time to pull things together or sell another house, but it doesn’t appear to be the case. I’m guessing it is because they are busy, and they reside somewhere else, so they are not really in any hurry.
Just as my agent was preparing all the disclosures and attachment documents to send back our Counter Offer… she gets a call from a new agent that is standing in the property with his client. He said his client wants to make an offer, did we have any offers?
She told him that his client needs to make his offer TODAY and she was just about to send off a counter offer. He begged that she hold off for a bit and she told him that his offer needed to be strong.
So, Thank Goodness we didn’t hit the Send button It’s going to be a roller coaster day waiting to see if that offer comes in
Here we go – let’s hope for a bidding war!
Marilyn – I like the idea of a light over the toilet. DH would really like that idea, too, since that’s his library.
On the left you can select each property and view photos and detailed characteristics
On the left there is a ‘drop down’ that shows the comp analysis with ‘average’ = $990,000 / $415/sq ft,
Based on that, my over simplified analysis is:
$990,000 average sales price
52,000 126 sq ft above average, times $415
25,000 un obstructable view
25,000 one car garage
Of course there are many other properties that could have been selected, all over the map. I just specifically focused in the immediate neighborhood in same general size.
I am just so so so tempted to run over to the property right now and make sure that everything looks perfect and clean and to accidentally ‘meet’ the buyer in case he has any questions. But, it would not be the right thing to do and I don’t want them to think I rushed right over there
If I were the second buyer and I knew you were about to make a counteroffer and I knew my offer had to be really strong, I’d come in at or very close to the list price. Which is – $990K, IIRC??
It’s going to be a roller coaster day waiting to see if that offer comes in