Home Buying Moral Dilemma

[fishoop]

Hey

Long time lurker, first(ish) time poster. I've been in the biz for over 10 years on the residential financing side. I can offer some additional perspective...

OP, you're on the right track. Wait for the right house for you and offer what makes sense to you. Don't stress over competing offers - they're outside your control.

If you don't trust your agent to advise you on pricing - find another agent you trust. There are outstanding agents out there who are worth their weight in gold.

Location is everything. Also be weary of 'fixed undesirable features' - AKA, near a loud road.

Ultimately, my clients are unequivocally happiest with the house they end up with. They are never remorseful about "the one that got away". What was the saying - if it's not OK, it's not the end. Well said.

Originally Posted by BillA

So when a house goes for way over asking and the bank sends the appraiser in and it will not appraise at the selling price, it just means the buyer has to come up with more money to do the deal, but the buyer knows this already.

So the seller asked for best and final, now he is holding out……..I think you got some bad info from your realtor saying the seller wanted a quick sale and to the right person even for less money………It is called blowing smoke up your arse.

The buyer doesn't necessarily need to come up with more dough if a home under appraises. It depends on the details of their financing. Ultimately, though, a buyer represented by a quality agent will know going in if there's likely to be an appraisal issue (based on comps). Also, as a buyer you have the option of an appraisal contingency - a renegotiation of price can occur with a low appraisal.

Originally Posted by Redfoot

Yeah, a house we loved/put an offer on in 2021 sold for $110k over asking, and the buyer did a conventional mortgage. The house appraised low and buyer had to kick in the full $110k. They must have reallllly loved that house.

If that's true, their lender made a bad mistake.

[BillA]

Originally Posted by fishoop

Hey

Long time lurker, first(ish) time poster. I've been in the biz for over 10 years on the residential financing side. I can offer some additional perspective...

OP, you're on the right track. Wait for the right house for you and offer what makes sense to you. Don't stress over competing offers - they're outside your control.

If you don't trust your agent to advise you on pricing - find another agent you trust. There are outstanding agents out there who are worth their weight in gold.

Location is everything. Also be weary of 'fixed undesirable features' - AKA, near a loud road.

Ultimately, my clients are unequivocally happiest with the house they end up with. They are never remorseful about "the one that got away". What was the saying - if it's not OK, it's not the end. Well said.



The buyer doesn't necessarily need to come up with more dough if a home under appraises. It depends on the details of their financing. Ultimately, though, a buyer represented by a quality agent will know going in if there's likely to be an appraisal issue (based on comps). Also, as a buyer you have the option of an appraisal contingency - a renegotiation of price can occur with a low appraisal.



If that's true, their lender made a bad mistake.

Theoretically you are correct. However, when you are playing in a super hot, desirable area that Seth is talking about (Montclair, NJ) an offer will not be accepted by the seller to renegotiate the price of the house if it does not appraise up to the agree price. More likely in such a contract that a seller will accept is a no mortgage contingency. Cutthroat market out there in some areas.

[fishoop]

Originally Posted by BillA

Theoretically you are correct. However, when you are playing in a super hot, desirable area that Seth is talking about (Montclair, NJ) an offer will not be accepted by the seller to renegotiate the price of the house if it does not appraise up to the agree price. More likely in such a contract that a seller will accept is a no mortgage contingency. Cutthroat market out there in some areas.

No Doubt. I'm intimately familiar with non-contingent transactions and/or all cash deals.

It continues to be tough to be a buyer right now. But if you're patient and focused, you will be successful. Good luck OP!

[superdog]

Originally Posted by fishoop

No Doubt. I'm intimately familiar with non-contingent transactions and/or all cash deals.

It continues to be tough to be a buyer right now. But if you're patient and focused, you will be successful. Good luck OP!

Appreciate it my man. Appreciate the insight too.

I’m looking now. But from the sidelines.

Enjoying the process.

[miamiclay]

This thread reminded me about this NYT article - “What $1.8M buys you in NY, FL, & TN”

This looks like a nice place in Sarasota, if you’re still considering FL …

https://www.nytimes.com/2023/06/14/r...e=articleShare

[edyu]

Others already gave good suggestions, I'll just give one thing that's often overlooked.

5000 sqft is a huge area to clean. It's seriously big unless your condo is that big or you'll overlook this easily.

Even the nicest house without normal upkeep or cleaning would just become a dump very quickly. And a large place means you need to rebuy all your furniture. Trust me, the scale of furniture matters and it's not even the brand. You may have the nicest sofa but if it's too small for your new place it would look terrible.

Originally Posted by superdog

I found a nice home. Fully redone. And done very very well. It’s 2500 sq ft, which is mostly perfect for me. The basement is fully redone too. The yard is not too big but a perfect rectangle and level. A perfect size to add a pool in the future and keep a plenty of grass in the process. The sod was placed a month ago and is perfect. It’s also got a brand new sprinkler system. The driveway is great. Also just redone. House needs nothing. Everything inside is done tastefully and with care.



The street is truly incredible and idyllic. Just beautiful. This home is likely one of the smallest. But also one of the best in terms of fit and finish. Endless charm on the street.



As you can imagine, the buyer will be paying the premium for this. I also think it is likely not ever going higher. At least not much. It’s simply too small to justify too much more. It might not be able to justify the price now.



The other home I’m looking at is 5k sq ft and newly built. It’s the most stunning home I could ever imagine living in. It’s on the other side of town. It’s truly magnificent in every regard.