Delusional sellers agent?

[techtraum]

My wife and I are very interested in purchasing a property that needs a lot of work. The comps in the area are in the $500K to $600K range, but the sellers are asking $700K (recently reduced to $675K after 6 months with no offer on the first price).

We’ve offered in the low $500s, but the sellers agent scoffed at us and said that none of the comps are really valid (i.e. the house is without a real comparison in her eyes). She insists they will only consider counters in the $600s.

Here’s the thing: we would actually consider paying as much as $600K for this property. The house is architecturally significant, so we do agree that it is probably worth a little more than the comps.
However, we have serious doubts that our lender will appraise the property for that price.

Do appraisals consider such intangible things as unique architecture (mid-century modern in this case)?

Is there any way to convince the sellers agent that the house will not appraise at their asking price before we go though the whole process only to have the financing fall through?

If we do go into escrow and the financing falls through, does anyone think they will adjust their price at that time? Is this a common scenario?

Thanks!

[EconProf]

Sounds like you are falling in love with this house, and willing to pay more than what the market (and an appraisal) would dictate–a dangerous place to be. I’d wait and let the market educate the delusional owner and his/her agent. Your point that an appraisal would not support their holdout price is your best ammunition. Stay on friendly terms with the seller and agent and be patient.

[EconProf]

Sounds like you are falling in love with this house, and willing to pay more than what the market (and an appraisal) would dictate–a dangerous place to be. I’d wait and let the market educate the delusional owner and his/her agent. Your point that an appraisal would not support their holdout price is your best ammunition. Stay on friendly terms with the seller and agent and be patient.

[EconProf]

Sounds like you are falling in love with this house, and willing to pay more than what the market (and an appraisal) would dictate–a dangerous place to be. I’d wait and let the market educate the delusional owner and his/her agent. Your point that an appraisal would not support their holdout price is your best ammunition. Stay on friendly terms with the seller and agent and be patient.

[EconProf]

Sounds like you are falling in love with this house, and willing to pay more than what the market (and an appraisal) would dictate–a dangerous place to be. I’d wait and let the market educate the delusional owner and his/her agent. Your point that an appraisal would not support their holdout price is your best ammunition. Stay on friendly terms with the seller and agent and be patient.

[EconProf]

Sounds like you are falling in love with this house, and willing to pay more than what the market (and an appraisal) would dictate–a dangerous place to be. I’d wait and let the market educate the delusional owner and his/her agent. Your point that an appraisal would not support their holdout price is your best ammunition. Stay on friendly terms with the seller and agent and be patient.

[jpinpb]

Do you know how much is owed on it? Perhaps they are not in a position to reduce. If no one bites, it may end up being a short sale down the road.

[jpinpb]

Do you know how much is owed on it? Perhaps they are not in a position to reduce. If no one bites, it may end up being a short sale down the road.

[jpinpb]

Do you know how much is owed on it? Perhaps they are not in a position to reduce. If no one bites, it may end up being a short sale down the road.

[jpinpb]

Do you know how much is owed on it? Perhaps they are not in a position to reduce. If no one bites, it may end up being a short sale down the road.

[jpinpb]

Do you know how much is owed on it? Perhaps they are not in a position to reduce. If no one bites, it may end up being a short sale down the road.

[techtraum]

Yes, we do have an idea of how much they owe and it’s definitely less than what we offered the first time. However, they are an older couple and it’s possible they were counting on a bigger profit to help fund their retirement.

[techtraum]

Yes, we do have an idea of how much they owe and it’s definitely less than what we offered the first time. However, they are an older couple and it’s possible they were counting on a bigger profit to help fund their retirement.

[techtraum]

Yes, we do have an idea of how much they owe and it’s definitely less than what we offered the first time. However, they are an older couple and it’s possible they were counting on a bigger profit to help fund their retirement.

[techtraum]

Yes, we do have an idea of how much they owe and it’s definitely less than what we offered the first time. However, they are an older couple and it’s possible they were counting on a bigger profit to help fund their retirement.

[Author]

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