To bring y'all quickly up to speed regarding this situation. I'm selling my home in an area which is still considered a slight seller's market. The home initially got two offers within the first 5 days, but that could've been luck because half of the homes square footage is technically in a heated partially finished walkout basement, so it's not included in the gross living space which makes the home look much smaller for the asking price. There has been a 2 month delay in this closing process, because I had to go through insurance to get the roof replaced after an insane snowfall came through the area and damaged the roof.
A bit about the buyer. They initially tried to low ball 10k under asking price but I stood firm so they offered to pay asking price on cash. Later, they decided to change from Cash to FHA loan, claiming he didn't want to pay fees associated with getting the cash. This required him needing an appraisal, to which it ended up coming out 18k under asking price. Now there was a lot of interesting things on this appraisal. It was missing a Woodburning stove, it did not value the fenced in back yard at all, it claimed the roof was shingles when it's a flat longer lasting gel roof, it claimed there was a dishwasher when there is not, and the 1200sqft heated partially finished and walkout basement that has a full sized finished bathroom was only valued at $5000 (which was only provided because a full sized bathroom of default valued at $5000), which means they valued the rest of the basement at literally $0. I UNDERSTAND that the basement is not considered GLS and is under grade value, but based on my research, typically basements are still valued at around 50-70% is the sqft of the above grade sqft. Plus with the space being partially finished, heated, having it's own bathroom, and a walk out exit, $5000 for that entire 1200sqft space seems incredibly low.
Our agent told them to request a new inspection, pointing out the factual flaws in the report, they requested a ROV but they denied it. They then told the buyer that they would have to change loan types and pay for a new appraisal, to which the buyer is asking me, the seller, to foot the new $500 appraisal fee.
My agent is terrified at losing this buyer after the appraisal, since apparently FHA appraisals apparently stick to properties for a few months and new buyers who may use FHA loans would get the same results. She wants me to split the 18k difference, which would result in me paying $3000 at closing, since we weren't making big profits from the selling of the home and we'd only be paying $3000 since my agent lowered her share from 3% to 2%.
IDK what to think. IDK why they won't do a new appraisal when there is blatantly incorrect information on the report apart from the basement being incredibly undervalued. It was the buyer who changed from cash to loan. How screwed am I? I gotta get rid of this house by May 1st unless I want to have two mortgages.
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source https://www.reddit.com/r/RealEstate/comments/1s3ajdf/am_i_the_crazy_one_regarding_this_appraisal/
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