Just Sold! 2033 Englewood Drive, Lemon Grove, CA 91945
Yesterday, I had another opportunity to help a long time client sell her home. This time the home was at 2033 Englewood Drive, Lemon Grove, CA 91945.
The escrow closed on January 31st, 2018. The final sales price was $410,000. The seller gave a credit to the buyers for $1500 for recurring and non recurring closing costs. Why would I blog about this home. Well, for a couple reasons. While a smooth escrow–this did not close without a hiccup.
We went under contract on December 26th for $419,000. Everyone was happy with the sales price, except for the appraiser. She came in and felt the home was valued less that what we were under contract for. The buyer’s were using a VA loan and because of that she issued what’s called a Tidewater. This was a term I had never heard before. What that means is the appraiser is giving us agents the opportunity to justify the sales price and make our case. For as strong of a case I felt as though we had, the appraiser didn’t see things our way.
If you’re an agent, you know what three options you have. If you’re a buyer and an appraisal comes in less–well, you have three options.
First, you can flat out reject the appraisal and put the home back on the market. Second, you and the buyer can come to some sort of solution to the problem. A compromise if you will. The third, you can, as the seller just lower the purchase price and close your property.
My client opted for a combination of options two and three. We did renegotiate the closing costs on the property and we ended up lowering the price. A reasonable solution for both sides.
I will warn you if you are selling your home, agents on the buy side, not savvy in negotiation, will expect you to just reduce the price. That is your option and you do not have to do that. However, if the buyer’s agent does disclose the appraisal to the listing agent, then that becomes a material fact and you must disclose it. In cases like this, I always suggest coming up with a solution.
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Chris Spade is a top producing at Keller Williams San Diego Metro. Chris has been in the industry since 2006. Chris is in the top 20% of producing agents in all of San Diego. For more information on selling a home, buying a home or buying an investment property, call Chris at 619-818-2992.