A professional friend of mine called Team 24/7 one day to list both of his homes. He was going to sell one & live in the one that didn’t sell first. He had just moved back into the less expensive one as he was getting a divorce and it was more affordable. Of course, which one do you think we got an offer on first!?
While the seller moved out, we set about to get through the due diligence process with the buyers when it became very apparent that the deal was losing momentum with regard to her financial stability. The buyer wanted to move in & rent until she was able to iron the problems out. We were considering these options when, much to our surprise, the appraisal came back short in value of approximately $4,000! Needless to say… that deal fell apart. Team 24/7 was convinced the price on the house was justifiable and went back to marketing the property wholeheartedly!
Two weeks later we received another offer identical to the first one.
The crazy part of this story is that once a property has been assigned to FHA and given a case #; the same appraiser will be assigned to the file again, meaning we had to use the same appraiser that appraised it $4,000 short! We thought we were doomed.
Team 24/7 went to work. We were able to contact the appraiser and review her price comparables and our price comps to get her (the appraiser) to at least agree to reconsider her previous appraisal of the property. Not only did she reappraise the property, the value was enough to cover the offer plus the buyer’s closing costs….approximately $8000 more! In the end, we sold this house two times at the same price, proving that sometimes the ‘market’ really does determine the value of things.
All parties have survived and are living happily ever after.
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