Gilbert Real Estate Blog
~ by Randy Hooker of Dreamcatcher Realty
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11th Thing You Should Know About Buying Foreclosures in Gilbert, Arizona
In the first ten installments of this series (1st Thing You Should Know About Buying Foreclosures, 2nd Thing You Should Know About Buying Foreclosures, 3rd Thing You Should Know About Buying Foreclosures, 4th Thing You Should Know About Buying Foreclosures, 5th Thing You Should Know About Buying Foreclosures, 6th Thing You Should Know About Buying Foreclosures, 7th Thing You Should Know About Buying Foreclosures, 8th Thing You Should Know About Buying Foreclosures, 9th Thing You Should Know About Buying Foreclosures, 10th Thing You Should Know About Buying Foreclosures), I wrote about Terminology, Pricing, Multiple Offers, Response Time, Property Condition, Repairs, Utilities, Bank Addenda, Owner-Occupant vs. Investor Buyers, and Closing Costs – as they relate to “Things You Should Know About Buying a Foreclosure.” Here’s the 11th post of the series:
- Appraisals – Perhaps the biggest ‘wild card’ of residential real estate these days is the infamous appraisal that is a requirement of any purchase utilizing a mortgage loan. Appraisers can no longer be influenced or manipulated by lenders or real estate agents, and in fact, appraisals are now done via third party appraisal management companies. That may very well reduce or eliminate undue influence by a lender or agent, but it also sets up the possibility of an inexperienced appraiser turning in a bad appraisal. Or an appraisal can be done by an appraiser that is not at all familiar with the particular area in which the appraised property is located.
The appraisal can ultimately make or break a transaction. What if the appraised comes in with a value that is substantially below the contracted price? Will the buyer be willing to ‘eat’ the difference? Will the bank/seller be willing to reduce the contracted purchase price to match the appraisal? Will the buyer and seller be willing to split the difference?
In transactions involving Foreclosures, there’s little or no direct negotiating with the bank/seller, so it’s vital that your Buyer’s Agent is experienced and knowledgeable in how to present the low appraisal to the listing/seller’s agent.
