So we’re out shopping for homes and happened upon a lovely place which just sold two years ago for 20% less than its current sale price. Now we know the market was not as good two years ago, but you’d be hard pressed to find a full time agent who would attest that the market has gone up in value 20% since then.
So we negotiated and negotiated and negotiated with the sellers. My buyers l-u-v-e-d this home but our negotiations took almost two weeks because my buyers wanted to increase their price each time, and I had to keep hold of their collar saying “It’s not going to appraise for this price!”
Not sure if the buyers believed me or not, until I got that phone call after the lender sent their appraiser out: “Are you ready for a belly-laugh?” my buyer said. I knew exactly what was coming next. “You were right – the house didn’t appraise.” So, what happened next? We renegotiated the price down because I worked for the buyer in this case. Had I worked for the seller, we might have ordered another appraisal, and stood our ground on the price.
My clients come to know I’m cautiously optimistic – my energy & enthusiasm are a must-have in this business, but that is tempered by my knowledge & history in the market, and the experience from being in this business full time for a long time. I don’t have a crystal ball, but I have a critique and an absolute strategy when I work for a client, be it buyer, seller, landlord or tenant. As one of my past clients said to me “You have a critical eye.”