selling price vs appraisal vs offer

[lbeck]

I am interested in a piece of undeveloped land that is being offered at $123k. The last appraisal on the county site is $80k. The lendor told me that they will only lend 80% of the appraised value. So should I offer $100k and hope that it appraises for that much after the contract? will that offer insult the seller and he won't sell?

The seller doesn't want to work with a realtor because he doesn't want to pay the fees so I'm stuck not knowing anything about the process! I'm not sure if I first put an offer and then draw up a contract, and then get the appraisal?

Thanks!

:confused:

[PghREA]

The last appraisal on the county site is $80k.

That is not an appraisal, it is a tax assessment.

[lbeck]

Great. Thank you! That makes me feel better about it.

Thanks for the response!!

[Lenderles]

If you are going to use a lender to purchase this land. Call your loan officer
and have him ask his appraiser (who wants your business) to do a looksee!
Because the property at some point will need to be appraised before you buy it. And make sure the appraiser who does the looksee is the one you give all your appraisals to. Because, if he takes time out to check the value for you, He will do it again and again. Dont go by the appraisal amount on the tax record. your appraisal usually comes in 10 to 15k, and sometimes higher. I also am a lender, And if any appraiser didnt want to do a looksee, That ment he doesnt need your business....


Hopefully this helps, good luck....

[lbeck]

Thanks for the reply! So is the looksee a preliminary appraisal? Does that cost additional?

Thanks! :)

[Lenderles]

If the appraiser looks on his system and says "I can get the value your asking for". Then its your discission if you want to go forward or not. Hopfully you will so the appraiser can be paid. You have to explain that your not putting in an appraisal order unless you know this property will
appraise for what your looking for. If the seller wants 123k and it appraise
for 100k. you need to contact the seller and try and renegotiate the sales
price.

looksees cost nothing...appraisers do these to get your business.
they hope if they get it right you will use them for future appraisals.

you always want a good appraiser on your team. Some time they make
excellent bird dogs....

Go get em TIGER!:D

[lbeck]

Thank you!!! We are going to call our loan officer today and tell him we want a looksee! Thanks for suggesting this - I had no idea this is something we could do.

Thanks again! You have been a huge help. :D

[Thesa]

Any appraiser is going to look at similar properties that have recently sold... your real estate agent should be able to show you what recent sales have been - this will be important in the appraisal process....

Make sure you are looking at recent sales and not active listings - the land is worth what a buyer is willing to pay - but there better be something to show the bank the value.

[Lenderles]

Thesa, When you read the first comments second paragraph. Ibeck said the seller didnt want to deal with A "REALTOR". So, That kinda means hes pretty much on his own. One on One, Mano E'mano :D

[Thesa]

Thesa, When you read the first comments second paragraph. Ibeck said the seller didnt want to deal with A "REALTOR". So, That kinda means hes pretty much on his own. One on One, Mano E'mano :D

Reading may be fundamental.... but so is knowing your rights. Even if the seller does not want to deal with a REALTOR - The buyer has every right to.... in a case like this I do a Buyer Broker Agreement - and whoola - the buyer is represented. Know everyone's rights before jumping to the conculsion that a buyer must be unrepresented - just because the seller is willing to take that chance does not mean the buyer must be just as STUPID!

[Lenderles]

BUT! The property was already found. Seller and buyer had come to the point of meeting of the minds. All that had to be done at this point, Is verify that the value is there. If this property doesnt work out for what ever reason, Like you, I also would suggest he get representation because it cost the buyer nothing. Most buyers think they have to pay the realtors fee when they really dont. At this point in the negotiations the buyer can be smart and bring a realtor in ,But, the seller can decline to paying any commission.:D

[Thesa]

BUT! The property was already found. Seller and buyer had come to the point of meeting of the minds. All that had to be done at this point, Is verify that the value is there. If this property doesnt work out for what ever reason, Like you, I also would suggest he get representation because it cost the buyer nothing. Most buyers think they have to pay the realtors fee when they really dont. At this point in the negotiations the buyer can be smart and bring a realtor in ,But, the seller can decline to paying any commission.:D

There are instances where the buyer can actually pay for the services of a Realtor - it all comes down to the way the contract is written and the way a buyer broker agreement is written. :D

[QWREALESTATE]

How badly do you want it? If you want it really bad without question. You could offer at least offer the Min Listing Price. If you are going for a long term investment and don't really have an attachment to that property and don't care either way if you get it, get it as cheap as you can. It's a buyers market. check out the blog at my website qwrealestate.com.

[dwright_97]

First you may want to go with a 90 or 100 LTV (loan to value) loan. I do this on land all of the time. Wells Fargo has a great 'one time close' option that will let you make one down payment for the land and the construction and then automatically roll that into a home loan once you get the Certificate of Occupancy. :) Great deal! The last one I did was 100% LTV.

Dani Babb, PhD