YOUR APPRAISAL CAME IN LOW, NOW WHAT?
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Joe and Flora have been looking for their dream home for about 6 months now. We finally found it and made a great offer. Even though there were other offers we were able to secure their new home.
However, two weeks later the appraisal came in and it was lower than their agreed-upon offer.
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Like most clients who find themselves at this stage Joe & Flora were disappointed. I always ask 1st what are your thoughts on this?
They said, we love the house but are we overpaying, are we being irresponsible, don’t they have to lower the price? That is usually their biggest concern and valid.🤔
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We start with a clear review of the written appraisal, challenge some properties used, request a senior appraiser review, ask the homeowner to lower their price, etc. Sometimes that’s the right direction to start and push towards.
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Other times we refer to the market sensitivity.
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This is the conversation we had.
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Now I want to share the fundamentals of the value of this home. In this case, you did our own appraisal. I am not talking about the institutional metrics.
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What I mean by that is this. You have touched and seen every home over a 10-mile radius that was in your price point over the last 5 months. Some of those are still on the market while others have gotten bidding wars like this one.
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How we determined the price was by literally having your hand on the pulse of the market. Your method makes is highly accurate and up to date. No appraiser is as accurate as you and the other 4 buyers of this home. The metrics you are using are the ones to trust. Appraisals have their place in the process but the valuation is subjective and a moving target.
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I want to recap the conversations we had when we started this journey 6-7 months ago. You have physically outgrown your home and your desire is to be in a bigger home and in a community that is a better fit. Are we still desiring that? Yes!
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Perfect, then it is easy to move forward and let’s just work out some details.
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I can assure you that this is the conversation (with much due diligence over the last few months) I have had for over the last 30 years one way or another.
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Trust the journey because 99.9% of the time it’s going to meet the vision you were after for many years into the future.
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This was the foundation of why I wrote the “2nd Story Process” guide.
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JoeDuenas.com
Give it a read.
I would love to hear your thoughts down below.
