[quote=sdrealtor]Well there we have it. Appraisal came in low so by your own definition you over paid. Agent put it on the MLS to get better offers and there weren’t any better offers (there is more to an offer than just price). 10% increase in a year not significant-tell that to your investment portfolio or anyone’s 401k. 10% fluctuations are normal seasonality-tell that to Rich’s graph. Not sustainable and will just disappear-tell that to your awful track record predicting price movements in the market.
Market softening already? Really? You know this how? There are 2 houses for sale in my hood and one is essentially unsaleable. The inventory has never been lower around here for decent houses even in 2003/2004.
You didn’t make a single point. Try again
BTW after a good house sells and prices rise its very common for people to come out of the wood work and say they wanted the house and would have paid more. Where were their better offers when it mattered?[/quote]
Apparently it wasn’t clear in my previous post, but we did NOT pay what they wanted. We paid the appraised value — and that was OUR appraisal. The sellers also had it appraised in order to counter our appraisal, and their appraisal came out $50K higher than ours. We know for a fact that they could have gotten the higher price, but like you said, there are other elements of an offer that may be more important than offer price alone. We were able to close very quickly and relieved them of the need to do some expensive repair work that was needed in order for other buyers to finance it. We also had no contingencies outside of an inspection contingency (with shortened duration) and appraisal contingency.
Also, in case I hadn’t made it clear enough, the house was never on the market. Even when they put the pics in the MLS (and they did this to play games with us because we refused to pay more than our appraised value), it was already under contract. They never cancelled our contract. There were other parties who wanted to buy it (neighbors whom we know, for example), but it was never available for sale. We had knowledge about the upcoming sale and locked it in prior to it ever being on the open market.
Not only that, but after we had completed the work on the house, we had another appraisal done when we were thinking about cashing out some of the equity. That was done this spring during the “spring selling season.” That appraisal came in only $25K higher than the seller’s appraisal, and that was AFTER an extensive remodel. Needless to say, that would mean that the property has increased by far less than 10% since we bought it.
BTW, you had originally asked how much I thought the price had increased over our purchase price, not how much it increased over the seller’s appraised value, nor the price that they could have easily gotten if the house was ever on the market. I said that it might have increased ~10% (likely less) from our purchase price, which was LOW.
Let me put this another way…if the house were put on the open market for 30 days when we bought it vs. 30 days on the open market today, if they collected offers during the 30-day period and took the highest offer, I think that today’s price would maybe be 4% higher than when we bought it.
And yes, the market is slowing. My timing is almost always early, by my trend forcasts have (at least up to this point) been right.
