A while back, I wrote about clients who were approaching a property that was, in my opinion, way overpriced. They made an offer at what I thought was a fair asking price and got shot down. They made another one, a bit over fair market price. Shot down again. I was instructed to let the listing agent know that if they come back again, the next offer will be lower.
Well, this did not work out well.
A week later, another buyer came in and matched the counter-offer that I thought was about $30,000 more than the property was worth. My clients suffered major regret. They asked me to call the agent to inform him that they would re-offer if the current offer failed on appraisal.
The property appraised for the inflated price, with an 85 percent loan. It closed on time.
I spent six weeks in the doghouse with my clients. Then my clients found a bigger, cheaper place in a better neighborhood. They bought it. My fear that lost condo would always be “the one that got away,” was not unfounded – the feeling was real for them – but it faded when they found their own place.
Have you experienced house-lust for an overpriced property? If you have, did you buy it and get through appraisal? Or did it fall through and you bought something better in the end?
From my little sample of the market, I still see properties appraising for more than I think they are worth. Am I the only one seeing overpriced properties get through appraisal?
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