Located in South Ogden, his home was listed in early January for $139,900. We placed on offer on the home for $130,000 and asked for $3,900 in seller paid closing costs. The sellers counter offered at $135,500 and agreed to pay for my clients closing costs. We placed the home under contract.
That is when our bizarre odyssey began with an appraiser who did not perform his duties well. I will go into detail on his malpractice in another post. Nevertheless, the appraisal came in at $126,000 even though surrounding homes supported a price closer to our agreed upon sale price. Our formal dispute of the appraisal yielded a final value of $127,000. We were forced to change the sales price and my client was compelled to pay for his own closing costs.
The irony of the appraisal drama is that my client got an even greater deal on this home. It is in superior condition and a great location. Congratulations on a fine purchase.
The drawback to this situation is that the free market was not able to operate properly while this appraiser was involved. Instead of the transaction being a freely negotiated win-win between the buyer and seller, it became a win-lose with the seller eating the loss. Fortunately, there is some recourse to prevent this from happening again in the future. Stay tuned for more of the story...
In the meantime, if you or anyone you know is looking to purchase or sell a home, contact me and let's look at the market in your neighborhood and put a plan together to meet your needs.
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