House Hunters: Buying in the USA

[AuntiePam]

39 minutes ago, dga28 said:

i cringe every time i hear the term "open concept" also.   i believe its a Canadian term popularized by some of the Canadian HGTV hosts...

in the US and elsewhere, people just say Open floor plan..which became popular due to people trying to mimic loft type living. 

Is that how it started?  I've always wondered how a design becomes popular.  Does it start with buyers or builders?  And how much influence comes from availability and cost of materials?   Older houses in river towns use a lot of brick, for example. 

"Open floor plan" -- are they cheaper because there are fewer walls and doors?  Open plans also allow for larger pieces of furniture. 

Something else that's puzzling to me -- if family sizes are getting smaller, why do so many houses have four or five bedrooms and three or four bathrooms? 

[dga28]

25 minutes ago, AuntiePam said:

Is that how it started?  I've always wondered how a design becomes popular.  Does it start with buyers or builders?  And how much influence comes from availability and cost of materials?   Older houses in river towns use a lot of brick, for example. 

"Open floor plan" -- are they cheaper because there are fewer walls and doors?  Open plans also allow for larger pieces of furniture. 

Something else that's puzzling to me -- if family sizes are getting smaller, why do so many houses have four or five bedrooms and three or four bathrooms? 

i am not a 100% certain but i remember about 25 to 30 years ago or more, there was this big surge of people repurposing industrial buildings along with churches, and barns, creating a lot of the open living spaces we see people wanting today.

[aguabella]

20 hours ago, AuntiePam said:

I'm still slightly confused on the Southfield house, with the multiple offers.   If my bank approved a loan for $115K, and I have a 20% cash down payment, and the appraisal is $115K, it'd be okay to offer more than $115K? 

Oops, hope I didn't exacerbate your apparent confusion.  It looks like a timing issue.  Let's reorder the items / events you mentioned in the above post.  Here's how things would have happened IRL (in real life).

1.  Buyer liked home and submitted a bid / offer.  Multiple offers so at some point she submitted a bid over list price.  The actual amount doesn't matter but let's call it 120K.  Her bid was selected.

2.  An escrow is opened and the buyer purchases / orders an appraisal, using a qualified appraiser from her lender's list.

3. The property doesn't appraise at 120K - it appraises at 115K.

4.  Assuming her offer contained the standard financing contingency, the lender would reject her loan (b/c the property didn't appraise at the offer price) and she could simply back out of the deal, receiving a refund of her earnest money deposit.

5.  In the Southfield example, however, the buyer had fallen in love with the home and didn't care to select another property.  So, she disclosed the appraisal's conclusion, a 115K value.   At this point in time, buyer / seller negotiations essentially reopen.

6.  Instead of attempting 1 of the 3 options I mentioned in my previous post, the seller opted to accept the appraised value of $115K and proceed with the escrow at that price.

7.  Returning to your original statement - no, the bank didn't approve the loan at 115K.  They rejected it at 120K, the initial offer that was submitted to them.  (Technically, the 115K approval constituted a second transaction.  See below.)

Does that help and make sense?  I could add a few more paragraphs of explanation but prefer to include only the essential information.  The downpayment is irrelevant to this issue and doesn't change - it's whatever the woman's lender required, according to the particular loan program she qualified under.

ETA:  Thinking about things from the seller's point of view, b/c the $120K offer failed / was rejected based on the appraisal, the seller could have opted to move on him/herself and either work with a backup offer or place the property back on the market.  (In the multiple bid situation, I would have advised the seller to accept backup offers.)  The loan rejection / financing contingency fail basically cancels that transaction. 

Seller probably accepted the buyer's new / revised offer at $115K b/c the escrow had been proceeding.  By this point in time, the inspections had probably been completed.  Why start over when you're already down the road, heading to COE (close of escrow) with this particular buyer?  And, unfortunately, the backup bidders probably moved on themselves by that time!

Sure, the seller could take a chance on another appraiser but b/c they listed it at 115K, it's possible that was his/her agent's own estimated value based on a CMA, comparative market analysis, I.e. the current "comps".  Without new and improved comps, sometimes it's better to accept that proverbial bird in the hand and close the sale.

Oh no - there's a few more paragraphs!  Sorry!

Edited August 6, 2016 by aguabella

[aguabella]

23 hours ago, snarts said:

It was Michigan in Winter, so I'll give you drab.  I travel for work, and it looked like any other snow covered midwestern/northeastern town.   Southfield is a suburb of Detroit, and a well-kept one at that.  There was nothing abandoned looking in the episode.  The opening shots showed boaters, with the back from commercial shots at a library and restaurant.  

You also might want to make a visit to Detroit.  On my last trip, there were construction trains all over downtown and nary a reservation available at any of the new restaurants on Open Table.  The bars were packed...on a Thursday.  

I was amazed at the price point on a 3 bedroom all brick home.  Glad she chose that one because the two story was a mess.  She offered over asking due to the multiple offer situation but that once they had selected her bid, the appraisal came in at $115k.  She said that she wouldn't pay more than the appraised price and sellers accepted the $115k.  They had the option to put the house back on the market at that point but didn't, likely because they would be required to disclose the appraised value and thus unlikely to receive any higher bids.  Most likely, her situation (down payment/financing/earnest $) were better then the next highest bidder.

Fell asleep during the Nashville episode.  Were they looking downtown or in one of the burbs?

IIRC, the Nashville couple was touring East Nashville.

Thanks for the Detroit update.  Glad to hear it's recovering.  Yeah - looked like a Midwest winter to me.  (It would have been filmed 6 months ago.) 

Important topic so forgive me - adding my 2c about appraisals:

Disclosure rules vary according to state law.  That said, appraisals are bought and paid for by buyers.  They're not always shared with sellers.  For one thing, if a seller knows his/her property appraised significantly higher than the buyer's offer, the seller might seek ways to back out of the deal and relist the property.

In the Southfield case, the buyer probably shared it to renegotiate the deal.  Otherwise, if she'd moved on, the seller might not have received it or even known the specific appraised value.  Moreover, appraisals are considered opinions, not material facts.  Values may differ significantly between appraisers. 

In addition, the appraisal only constitutes a snapshot in time, prepared as of its report date.  If a comp sale occurs the following day, the appraisal could be immediately outdated.  Any appraisal is definitely outdated six months past its report date.  For these multiple reasons, many, if not most professionals, depending on their state rules, don't always disclose a prior appraisal.

Like everything, there's an exception.  Gov't appraisals, say FHA, are disclosed and follow the property for six months.  Another wrinkle:  if an appraisal contains notice of a material defect, that defect must be disclosed.  (For example, unusual but if the appraiser reduced the value b/c of a previously unknown major repair issue and that issue was disclosed to the seller.)

P.S.  Not a big deal but I wouldn't necessarily assume the Southfield buyer was the most qualified.  Sure, the other factors matter but to a seller, if the bidders have all been qualified, price trumps everything!  BTW, this is one time the realtor and client's interests may differ.  (If anyone's interested in that topic, let me know.)

Just my opinions - hope that helps anyone I previous confused! 

Edited August 6, 2016 by aguabella

[AuntiePam]

Thanks for the added info.

What initially confused me was the Southfield buyer saying that there were multiple offers.  That usually means that the offers were for asking price, or above the asking price.   So I expected her to follow up by saying that she had to raise her offer.  They almost always do that.

When she said the appraisal was for $115K, so she got it for $115K, that made me question whether there really were multiple offers.  Surely one of those other potential buyers would have been able to finance the purchase for more than $115K.   A cash buyer, or someone with a 20% down payment, wouldn't have had to worry about the appraisal.

Long story short:  It sounded like she was being defensive about paying full price. 

[GATenn]

Quote

I liked house #3 best

House #3 on the Nashville episode was my house, so thanks!

[Kohola3]

Quote

House #3 on the Nashville episode was my house, so thanks!

OK, so 'fess up.  Was your house a plant?  Were you lending it for the show or was it really for sale?

[GATenn]

It really was for sale, but that's about all I can say...;)

Edited August 7, 2016 by Nashville Pete

[Kohola3]

Quote

It really was for sale, but that's about all I can say...;)

Well, shoot, there goes our insider info!

[magemaud]

Quote

Something else that's puzzling to me -- if family sizes are getting smaller, why do so many houses have four or five bedrooms and three or four bathrooms? 

Family sizes ARE getting smaller, but heaven forbid a child should be forced to share a bedroom or bathroom with one or more siblings! If there are more bedrooms than people, the extras become rooms for the constant influx of overnight guests (who also must have their own bathroom!) or the requisite "craft room" or to display the husband's collection of antique guitars. 

[Kohola3]

And do any of them take into account the heating and cooling costs of all of those extra unused rooms?  I live right on Lake Huron and have a guest room but it's pretty much only used a few weekends in the summer.  How many people hosts throngs of people year round?

[GATenn]

4 hours ago, Kohola3 said:

Well, shoot, there goes our insider info!

I had to sign a non-disclosure agreement, so...

[Kohola3]

Quote

I had to sign a non-disclosure agreement, so...

I don't suppose you had your fingers crossed behind your back, did you?

[topanga]

21 hours ago, Nashville Pete said:

House #3 on the Nashville episode was my house, so thanks!

Did it bother you when the home owners said negative things?  e.g. "This kitchen? Yuck. Complete gut job."

[GATenn]

Actually, IIRC, the only bad thing they said was about the garage/basement and that the master bedroom was small. They are encouraged to talk some smack, I believe.

 

I found out later that the buyers really loved the house.

[Pickles]

Tonight's episode with the young couple buying in Mobile. They were driving a huge, new GMC vehicle. It was prominently featured in the show. Cut to commercial and the same car is the star of the commercial. Is this a new thing they are doing?

[laredhead]

HH did this for a little while a year or so ago, and I noticed it last week on an episode and again tonight.  Product placement I guess.

The textured walls in the house they bought were awful.  I don't think I have ever seen texture like that and I can imagine what a pain it must be paint them.  Not sure if painting them white is going to help a lot.  That's old style plaster, so it's probably a lot harder to get rid of than scraping a popcorn ceiling.  

The floor furnace grate issue is a non-issue, IMO.  Call a flooring company and have it removed and some new wood woven in and stained as was suggested by the realtor.  No reason to walk out of a house and refuse to consider it just because of that if the floor furnace isn't the sole source of heat.  Those things are dangerous when they are still functioning though.  My cousin fell on one when she was a child and still has the scars from the burns she received from landing on the hot metal grate.

I understand the woman's comments about the height of the cabinets and stacked laundry.  I'm short, but she seemed to be maybe 5' or a little more and she will need a ladder to reach into the cabinets as well as changing the A/C filter which the realtor noted had been moved to the ceiling.  That's fine when you are young and can climb a ladder or have someone to do it for you, but when you are older and live alone as I do, it's a bit dicey balancing on a ladder and trying to change the filter.  Newly built houses all seem to have the return air grates in the ceilings now and some of these houses have 11 or 12 foot ceilings.  How on earth do you manage to change filters or light bulbs?  I guess you use LED's and hope they last longer than you do, and as for the filters that have to be changed every couple of months, make friends with a tall person.  

I liked the front porch on the house they chose.  Would be a good place to sip a drink while sitting in the porch swing.     

[OpieTaylor]

19 minutes ago, laredhead said:

HH did this for a little while a year or so ago, and I noticed it last week on an episode and again tonight.  Product placement I guess.

The textured walls in the house they bought were awful.  I don't think I have ever seen texture like that and I can imagine what a pain it must be paint them.  Not sure if painting them white is going to help a lot.  That's old style plaster, so it's probably a lot harder to get rid of than scraping a popcorn ceiling.  

I liked the front porch on the house they chose.  Would be a good place to sip a drink while sitting in the porch swing.     

I saw the obvious product placement too - GM vehicles!  And that wall texture was awful - why was that ever done??  I agree that the front porch was wonderful.

[Albino]

On 8/7/2016 at 4:03 PM, magemaud said:

...heaven forbid a child should be forced to share a bedroom or bathroom with one or more siblings! If there are more bedrooms than people, the extras become rooms for the constant influx of overnight guests (who also must have their own bathroom!) or the requisite "craft room" or to display the husband's collection of antique guitars. 

It's tragic, in my opinion.  And what's even more tragic is that none of the Presidential candidates have yet to address it.  Kids' Lives Matter, people.  

[azshadowwalker]

1 hour ago, laredhead said:

 

The floor furnace grate issue is a non-issue, IMO.  Call a flooring company and have it removed and some new wood woven in and stained as was suggested by the realtor.  No reason to walk out of a house and refuse to consider it just because of that if the floor furnace isn't the sole source of heat.  Those things are dangerous when they are still functioning though.  My cousin fell on one when she was a child and still has the scars from the burns she received from landing on the hot metal grate.

I grew up in a 1930s Craftsman that had two functioning floor furnaces. It's amazing that no one ever got burned by them. Eventually, my parents put in a regular furnace, but the floor ones stayed in place, just with the gas turned off. I also had a 1930s Foursquare that still had the grate. At some point, a wall heater had been installed. A piece of wood was put under the grate to close it off. I kind of like the way they look. 

[NYGirl]

I agree about the wall texture...ugh.  But I knew that'd pick the first one.  It was the nicest one.  Too bad it was only 2 bedrooms. I wonder if they could add another.

Did you notice the wife said "I don't want to do no fixer-upping".  

[juliet73]

Mobile couple: ugh!!! They were so annoying!!!  I don't know if it was because they looked twelve and wanted EVERYTHING for under $160k, or her constant "I can't reach it" etc.  

Those textured walls were horrible.  I think he mentioned it was going to cost a couple thousand to have them fixed.  They got a few thousand off the price of the house, why didn't they use the money to have them sanded down/replaced?  They are just wasting their money and time by painting them IMO. 

I don't understand when people are looking at a move in ready home where NOTHING, I mean NOTHING needs to be done and they complain about the kitchen not having a refrigerator!  "We're already near the top of our budget, etc" ugh!!  It's $1200!! Ask less for the house if it's that big of deal! 

[Empress1]

27 minutes ago, juliet73 said:

Those textured walls were horrible.  I think he mentioned it was going to cost a couple thousand to have them fixed.  They got a few thousand off the price of the house, why didn't they use the money to have them sanded down/replaced?  They are just wasting their money and time by painting them IMO. 

I don't understand when people are looking at a move in ready home where NOTHING, I mean NOTHING needs to be done and they complain about the kitchen not having a refrigerator!  "We're already near the top of our budget, etc" ugh!!  It's $1200!! Ask less for the house if it's that big of deal! 

Those textured walls were awful. Painting them would not have been a consideration for me - they would have had to go immediately. The texture reminded me of cockroaches. They bought the house for ten grand under asking and he said the quotes to redo the walls were "a few grand," so I'd prioritize that first, particularly since painting them is such a pain. It's a waste of time and effort.

Whenever someone says they want new appliances, I think "So buy them." I mean, if a house has them, great, but if not, shift some things around in the budget and buy them. If your budget is that tight that you can't afford another grand, you're probably buying too much house. Same when people complain that a house is three grand over budget.

I understood what the woman meant about wasted cabinet space - the cabinets in the second house did look high and climbing up and down a ladder to use them would be annoying. But would she need a ladder to deal with a stackable washer and dryer? I'd think a simple footstool would solve that problem. Same with the light switch in the second house's hall bathroom. I hated the blinding white master bathroom in the second house, although I loved the hall bathroom with the basket weave floor.

The product placement was really blatant this ep. I've noticed it before but it's made a bit more sense (Zillow).

[juliet73]

2 hours ago, Empress1 said:

 

Whenever someone says they want new appliances, I think "So buy them." I mean, if a house has them, great, but if not, shift some things around in the budget and buy them. If your budget is that tight that you can't afford another grand, you're probably buying too much house. Same when people complain that a house is three grand over budget.

I understood what the woman meant about wasted cabinet space - the cabinets in the second house did look high and climbing up and down a ladder to use them would be annoying. But would she need a ladder to deal with a stackable washer and dryer? I'd think a simple footstool would solve that problem. Same with the light switch in the second house's hall bathroom.

Totally agree!!  

 

I don't think it's wasted cabinet space.  They could put the dishes/platters/etc they only use once or twice a year up there.  She could climb up on the counter like the rest of us to get them down.   The light switch in the bathroom could easily be moved down for less than a couple hundred bucks by an electrician. 

[Kohola3]

I wonder if HH has some sort of book that they give to each participant.  It lists approved words and phrases that must be used at least once per episode to quality for airing.  And if they use them more than once they get some sort of bonus like driving the product placement car.  

Mandatory to each episode are "I can see myself...", "We need to have space for entertaining/guests". "This is going to be a tough decision", and "I think we should eliminate one".

[magemaud]

My husband walked by the TV room during the Mobile couple episode and asked me, "Is that a CHILD talking?" when he heard the wife. When he saw her in that baby doll dress that barely covered her...you know...he said, "M-kay..." 

[Babalooie]

KOHOLA3, I always assumed that they were reading off a teleprompter like politicians.  You can watch their eyes and see that they are following the words.  It is very scripted, as we know.

[chessiegal]

They filmed a house in New Orleans where my stepdaughter lives across the street. She said when they filmed the outside shots (less than 10 minutes), there was the couple and real estate agent, a camera guy, a sound guy, and a producer. I suppose they could use a teleprompter for the THs.

[AuntiePam]

I doubt there's a teleprompter, but there are probably a few retakes, and some rehearsals.  I'm kind of amazed at how good some of them are, at acting. 

[ByaNose]

Mobile woman's voice drove me up a wall. Sheesh! Don't even get me started on aversion to floor grates.

[topanga]

On 8/9/2016 at 7:06 PM, ByaNose said:

Mobile woman's voice drove me up a wall. Sheesh! Don't even get me started on aversion to floor grates.

While I can understand her aversion to floor grates (I hate to walk over steel grates on the street), I didn't like that she poo-pooed her husband's aversion to the textured walls. Which did suck by the way. 

I thought the 3rd house was the best looking house, and the roomiest. But I liked #1 also--the one they picked. 

[Sun-Bun]

This past Sunday I happened to see the episode with some young couple in New Orleans searching for their perfect shotgun house. The wife was seriously Negative Nancy, and had the most random pet-peeve she constantly mentioned about *needing* a front entryway and that houses without them looked messy and cluttered, or some random OCD shit like that. God forbid someone take off their shoes and outerwear in the main living room area right by the doorway, oh noes!! It was just such a random necessity and made me wonder if production forced her to have some strange house preference to constantly mention.

I loved that her realtor was like, "Girl, traditional shotguns don't have front entryways!!" Go figure, they chose a house without one, but the doorway area was "big enough" for Princess Front Entryway to approve of in the end.

Also, I can't take the mousy, squeaky-voiced little vocal-frying young white chicks anymore. They're literally causing me to switch the channel in disgust. Speak with confidence and authority already, ladies!!

[Ohwell]

48 minutes ago, Sun-Bun said:

Also, I can't take the mousy, squeaky-voiced little vocal-frying young white chicks anymore. They're literally causing me to switch the channel in disgust. Speak with confidence and authority already, ladies!!

I swear, I don't know how their husbands/boyfriends can stand to listen to them!

[ByaNose]

Yeah, vocal fry & HH don't mix. It's like nails on a chalkboard. How do these guys put up with it? It makes the woman sound so dumb. Speak up with some backbone would you. Jeez!

[KLovestoShop]

Many men love that squeaky little girl voice, but for what reason, I don't know.  In a very few years, I'm afraid that those of us with "normal" voices will be in the minority. 

[Empress1]

Ha - my ex and I both have low voices and our voices were one of our favorite things about the other. He called mine "rich." 

Austin couple went with a boring new construction. I was hoping they would go for the fixer. The first one was too small at only 700 square feet. Very cute puppy though!

[NYGirl]

I loved that second house in Austin.  Really just remove the styrofoam wall and paint those kitchen cabinets and you're good to go.

I was disappointed that they went with the new build.

[AuntiePam]

The Austin couple were fun to watch -- sweet, natural, and entertaining.  I think they really like each other. 

I was disappointed that they went with the new build too.  If you're going to spend all your time indoors, it'd be fine, but there was no outdoor space and the other houses were way too close. 

[Albino]

22 hours ago, AuntiePam said:

I was disappointed that they went with the new build too. 

So much for Keeping Austin Weird.

[StatisticalOutlier]

36 minutes ago, Albino said:

So much for Keeping Austin Weird.

True dat.  I guess all these people are thinking they'll be the last ones in before the city is ruined by all the newcomers.

The realtor said the house was six miles south of downtown, and would be a 15-20 minute commute.  Not in your wildest dreams.  You have to go over a river to get downtown--pick your choke point. 

[laredhead]

The house that the Austin couple purchased was a surprise to me.  I figured they would choose #2, especially since it had a large yard.  They could have had room to add on to that house in the future.  The house they chose had a $140/mo HOA which covered the front yard maintenance.  The front yard wasn't that large, so it must have covered more than that.  I noticed that none of the houses had wooden privacy fences and that the fencing was all uniform, so I imagine that is also part of the HOA rules.  Those open fences gave very little privacy and the husband was correct when he said he could see all of the neighbors and they could see him.  For once, I agreed with an HH who complained about how close the neighbors were.  

[topanga]

1 hour ago, laredhead said:

The house that the Austin couple purchased was a surprise to me.  I figured they would choose #2, especially since it had a large yard.  They could have had room to add on to that house in the future.  The house they chose had a $140/mo HOA which covered the front yard maintenance.  The front yard wasn't that large, so it must have covered more than that.  I noticed that none of the houses had wooden privacy fences and that the fencing was all uniform, so I imagine that is also part of the HOA rules.  Those open fences gave very little privacy and the husband was correct when he said he could see all of the neighbors and they could see him.  For once, I agreed with an HH who complained about how close the neighbors were.  

While I did find the outside to be cookie-cutter, I did like the interior. The front door had those wooden planks, the stair railings were unique and attractive, the bedrooms were a nice size, and that kitchen was fabulous (though not especially unique).

And yes, the neighbors were close. But I guess I've lived in an urban area for too long--it didn't faze me. All of our neighbors are that close. We simply close our blinds when we're changing. And you'd be surprised that when neighbors are outside in our back yards, we all tend to mind our own business and give each other an illusion of privacy--even though everyone is right there.

[Ohwell]

Regarding Austin house: I thought the interior was nice but it didn't make up for how cookie cutter and drab looking it was on the outside.  Maybe they can do some landscaping to put their stamp on it.  However, I don't understand the open fencing.  I live in a townhouse development with privacy fencing and there's no way I would have bought it with open fencing like that.  

But hey, it's their crib and they like it, so...... 

[aguabella]

What were they doing in Mobile?  Paint brushes?  How about trying napped rollers, for starters?  Even better, forget painting!  If this was suggested by their gc relative - sorry but they might need to consult someone else.

My two options for them:

First:  call in the pros and drywall over the damn texture.  WRT their savings, if they paid $3K less for the home, they'd have $600 (reduced downpayment, if they used a standard 80/20 loan) + $10-$15 off their monthly payment.

Second, cheaper and DIY if they have time:  trowel on wallboard compound and/or use a $25 (at discount tool shops) spackling gun to achieve their desired texture, sand out the skim coat (if they opted for smooth) and paint.  Sure,  it's a few steps and somewhat time consuming but definitely better than those walls.

Painting?  Fuh-gedd-aboutit!

Edited August 12, 2016 by aguabella

[Ohwell]

Those walls were a hot mess and all they did was have a hot mess with fresh paint. 

[Kohola3]

You don't understand.  Twenty year olds are ENTITLED to huge homes with more rooms than they can use in a lifetime, a commute that is less than five minutes while simultaneously being so remote that they cannot even see their neighbor but is still close to public transportation and on a quiet street (preferably a cul-de-sac) where traffic only passes by once or twice a day.  If they have kids they are ENTITLED to a home where there are no hard surfaces, corners, stairs, balconies, ponds, noxious fumes, pools or anything that could possibly cause harm to Blessed Precious and must be complete devoid of any walls at all so they can entertain on a daily basis as well as keep an eye on the family at all times.  They are ENTITLED to a place that requires no work whatsoever (all of the walls should automatically be the colors that they love) so that they can “see themselves” living here.  And this must be all available at a lower price than they are willing to pay because they are ENTITLED to it.

Don’t be me started on the Holy Trinity….

[aguabella]

On ‎8‎/‎6‎/‎2016 at 3:57 PM, AuntiePam said:

Thanks for the added info.

What initially confused me was the Southfield buyer saying that there were multiple offers.  That usually means that the offers were for asking price, or above the asking price.   So I expected her to follow up by saying that she had to raise her offer.  They almost always do that.

When she said the appraisal was for $115K, so she got it for $115K, that made me question whether there really were multiple offers.  Surely one of those other potential buyers would have been able to finance the purchase for more than $115K.   A cash buyer, or someone with a 20% down payment, wouldn't have had to worry about the appraisal.

Long story short:  It sounded like she was being defensive about paying full price. 

Anytime, AuntiePam!

WRT multiple offers, it doesn't necessarily mean they exceeded asking price.  Many times, in the multiple offer situation, the seller requests 1 offer only, i.e. their "highest and best".  For this situation, we could deduce that the offers exceeded list b/c we were told the property didn't appraise and she reduced her offer price (after the initial contract was effectively cancelled, see below) to list price.

By the time an appraisal's completed, it's at least 1-2 weeks later so those other potential buyers have usually moved on.  And, most importantly, the seller is under contract with the initial winning bidder (our HH participant, in this case) and can't simply return to the other bidders to solicit a higher offer. 

In our situation, the buyer could have simply submitted a letter from her lender, indicating that the loan wasn't approved, received her deposit back and moved on, herself.  If she'd wanted to, she could sell the appraisal to the seller, if he/she wanted it.  (The seller might not even want it - it's only one person's opinion of value at that point in time and appeared to confirm the seller's own opinion.) 

If/when she submitted said letter, the contract would have been cancelled.  Then, not before, the seller could contact the previous bidders and/or relist the property.  Here, inspections were most likely already completed so it made sense that the seller opted to simply renegotiate the price with the initial, contracted buyer, swapping in the appraised value / list price.  Otherwise, relisting the property would have significantly delayed matters. 

In this transaction, apparently none of the parties questioned the appraiser's opinion of value.  Given that, why should any buyer overpay for the property?

No bank will lend more than their share (80% here) and increase their risk.  Why would a cash buyer overpay for a property?  Incidentally, I always recommend an appraisal contingency for any buyer, regardless of financing.

Why did you doubt that they actually had multiple offers?  I'd probably be the first to call them out, if/when I believed the episode was faked.

How was she defensive?  Something wrong with paying the appraised value or list???  I'm really curious to hear what you noticed that caused you to doubt the episode.  What did I miss, lol?  Would love to receive a response, if/when you have time. 

Thanks!

Edited August 13, 2016 by aguabella

[aguabella]

On ‎8‎/‎6‎/‎2016 at 8:49 PM, Nashville Pete said:

House #3 on the Nashville episode was my house, so thanks!

 

On ‎8‎/‎7‎/‎2016 at 9:14 AM, Nashville Pete said:

It really was for sale, but that's about all I can say...;)

 

On ‎8‎/‎7‎/‎2016 at 8:03 PM, Nashville Pete said:

Actually, IIRC, the only bad thing they said was about the garage/basement and that the master bedroom was small. They are encouraged to talk some smack, I believe.

 

I found out later that the buyers really loved the house.

Lovely home, Nashville Pete and beautifully staged!

Sounds like the Nashville market was doing well six months ago with limited inventory.  Somehow I doubt you had trouble selling it.  Congratulations!

And, someone honoring their nda - wow!

I do hope, however, that someone advised you about the standard 6 mo editing period before you vacated your home for 12 hours.

"Encouraged" to talk smack, lol?  How about provided with semi-scripted smack!

Best of luck to you ...

[AuntiePam]

47 minutes ago, aguabella said:

Why did you doubt that they actually had multiple offers?  I'd probably be the first to call them out, if/when I believed the episode was faked.

How was she defensive?  Something wrong with paying the appraised value or list???  I'm really curious to hear what you noticed that caused you to doubt the episode.  What did I miss, lol?  Would love to receive a response, if/when you have time. 

 

 

I doubted multiple offers because I thought "multiple offers" meant offers higher than the asking price -- a bidding war.  But now that you've explained it -- that the offers may have been lower than asking -- I'm understanding it now. 

I don't remember why I thought she was defending paying the asking price.  Maybe because I'm so accustomed to seeing HH buyers getting a house for less than asking price. 

Thanks again for taking the time to explain it.

[Tony]

On 8/5/2016 at 8:11 PM, Albino said:

And what do half of these Craftsman-loving buyers do?  Tear out the built-ins!

And paint over most of the wood!