Thank goodness the appraisal problem I had last week solved itself!
If you hadn't seen the last blog post, then you may not be aware that I had an appraisal issue. Appraisal issues are not fun. In fact, everything can be going along just swimmingly and the rug can get pulled out from under everyone's hard work.
In this particular case, I had sold a house to some really nice folks and we were going through the closing process. This was no inexpensive sale, as the house was in extremely good condition and priced accordingly. (Let's just say it was near the half-million mark.) So what was the problem? The lenders appraiser thought it was worth below the half million mark, and like a hot potato placed in my lap, I had to do something quickly.
Now whether you're working in the Mount Pleasant SC real estate market, or in any other part of Charleston for that matter, it's never easy (or wise) to try to get an appraiser to change their mind.
Consider any expert in their profession, doing the best job that they can with the information they have at their fingertips. Nobody likes to be corrected, or worse, told that they are wrong about something that they know quite a bit about. So it's always a touchy subject, and one that we as Realtors are faced with frequently. We have a buyer and seller, both who would like to very much move forward with their lives.
Enter the appraiser. A good person, doing their job, just trying to protect the process. Their role provides a checks and balance system, and without careful scrutiny from their part, prices can quickly grow at an uncontrollable rate. They are set out to protect the buyer, so I try to never fault them when there's an issue. In fact, I try to approach them with great appreciation for what they do.
So how was the problem solved? The way the contract reads is if the appraiser appraises a house for less than the sale price, and the seller agrees to sell it for less, then the buyers have to buy it. In this case, the seller didn't quite agree to reduce it fully, but made a very reasonable counteroffer and we were able to continue on forward toward closing with a reduced price that almost matches the appraised value. Since this was a conventional loan, the buyers are putting down 20%, the lender is okay with buyers position of bringing a few more thousand dollars to make the deal work.
This likely would not have been the issue if it were an FHA loan. But let's face facts. FHA loans are another conversation. Another complicated blog post about a dry subject that I will have to wrack my brain over to try and breath life and interest into. I just don't have it in me right now to tackle that elusive subject. (But one day, one day I will address it head on!. And I will show no mercy)
So the good news (for both buyer and seller) is that the Mount Pleasant SC real estate problem that plagued to my calendar last week, worked itself out magically with very little heartache on all parts.
Thanks for tuning in...
Nat Wallen is a Realtor in Charleston SC specializing in residential property sales. He has been licensed since 1995 and is the top listing agent with Carolina One Real Estate. Carolina One Real Estate is the largest company in the Charleston SC area of 700 plus agents. For more detailed information, visit his homepage at natwallen.com. NOTE: Nat Wallen never solicits consumers interacting with his blog unless requested. YOUR comments are encouraged and welcomed. Thanks!