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Tough decision

Posted on: 24th Feb, 2013 09:00 am
We are looking at a colonial (house # 117) listed at $300K. 1600+ sq ft, 3 BR, 1.5 BA, oversized 1 car detached, no EIK, each BR has a closet and there is a coat closet by entryway, no linen closet. We do not want to offer more than $250K and I'll explain why. We are concerned it might not even appraise for $250K. It is move in ready with the exception of the roof needing to be replaced soon. Very nicely kept. Our reservation comes from a house deal just a few houses down that we were involved in and fell through due to a low appraisal. That was in September. That house was a unique cape cod (house # 127), 1800+ sq ft, 3 BR, 2 BA, 2 car attached, EIK. I'm only pointing out main differences, that I predict would affect appraisal outcomes. 127 was not cared for as well as 117. It definitely needed more work, but we loved it. Our offer on this house was $250K. We went through the entire process; inspections, appraisal, title search, etc. The appraisal came back, $210K. I attribute some of the failure to poor representation, some to us loving the house and rushing into a deal without researching more. Now my opinion is, with the differences I listed in these two properties, 117 shouldn't appraise for much more than 127. Which sways me to want to offer low 2's. Am I relying too much on 127's appraisal? Does anyone else have any opinions based on what i have described?
Hi RJ,

You shouldn't give too much importance on the appraisal of one property in the neighbourhood (127). If you have doubts regarding the appraisal, then you can take help of an independent appraisal and get to know the value of the property.
Posted on: 24th Feb, 2013 06:58 pm
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