Seller is a Real Estate Appraiser (requirements, contract, sales, purchase)
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I am in a completely different field, so just curious about the implications of buying a home from a seller who owns his own real estate appraisal company.
The home we are currently under contract with is owned by 2 individuals in the business. The wife is a realtor (representing the house) and the husband owns a real estate appraisal company.
We are going back and forth over a clause in the contract about the possibility of a low appraisal (see this post on the topic), but am I being a bit too suspicious that they have the ability to sort of "steer" the buyer into the price they want b/c they have a really good idea what it might appraise for?
Are you a real estate appraiser who has sold a house of your own? How does knowing the general range your house will appraise within effect your negotiations with the buyer? And as an appraiser, if the official appraisal done comes in slightly lower than the agreed upon purchase price, would you still go with the contract & lower the price OR stick to your guns, put the house back on the market, and believe it would be appraised higher by another buyer's appraiser even with the market still declining?
Thanks for any insight into what our sellers might be thinking!
I don't think they could "steer" anyone any more than someone who WASN'T a real estate appraiser. I would think that being an appraiser would've helped them price it more realistically. Should a "low" appraisal come in, anyone would have the same right to back out - not just the appraiser/owner. The decision to accept a lower price or hold out for a higher one is one any owner would have to make: take a lower price and be done with it and get on with my life or hold out for a higher price (however long that may be) and hope that the holding costs won't overcome the price I'm trying to get.
My husband and I are both real estate appraisers and we both sell real estate as well. I think our additional knowledge helps us and our clients. It is a great advantage that is available to any agent that is willing to educate themselves above and beyond the minimum state requirements(whether they get or have another license or not).
I've been an appraiser for 28 years. I think you're thinking WAY too much. Just go with the flow and don't worry that you are at some sort of disadvantage since the seller is an appraiser. Geez........
Although an appraisal is usually stated as a single number, most of us base that on a range of values indicated by the adjusted sales prices of houses that sold recently that have a similar utility, are proximate, and are competitive to the subject house. If the other appraised value lies within that range of values then there probably won't be any difficulty accepting the lower price. If the other appraisal is substantially lower than the indicated range, then we might very well want to review that appraisal and see where one of us (either me, an appraiser, or the other appraiser). If the other appraiser did not do his job right, then I might refuse to sell at the lower price.
BilliHiser & GoodPasture - thanks for your feedback. Appreciated.
My previous post sort of explained why I asked this question - it was based on a situation I was in with the sellers of a house we're buying. I was just curious how realtors/appraisers use their knowledge to set house prices and figure out what they will accept as an offer. I know that when they are selling a house, they are just the "sellers" like anyone else, but figured having the additional knowledge might be helpful in having a better idea of what they can expect the house to sell for.
In the case of the house we're buying, I was surprised that the house was priced pretty high based on comps/what's sold nearby. Will be interested to see what the appraisal shows! ;-)
I've bought and sold quite a few houses over the last 35 years. Other than the fact that I generally let the appraiser and buyer know I'm an appraiser, nothing is special or different about me being an appraiser. The appraiser might tend to make sure he does it RIGHT, but as a buyer, you are worrying over NOTHING.
Last edited by Green Irish Eyes; 01-27-2011 at 07:30 AM..
Reason: Edited out reference to deleted post
In the case of the house we're buying, I was surprised that the house was priced pretty high based on comps/what's sold nearby. Will be interested to see what the appraisal shows! ;-)
Just goes to show you that there is a lot more to appraising than basing it soley on what other houses in the neighborhood have sold for
I guess I'm thinking a home appraiser, real estate agent, etc... have the right to sell their home like any other homeowner.
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I find the whole appraisal process confusing, but sounds like many do as it's not always cut and dry. Appreciate the feedback!
