This Seller Had A Monopoly On His Very Own Universe!

I've read a bunch of posts and articles lately about the use of short sales and foreclosures as comparables for appraisals. This is something that is frustrating the hell out of a lot of sellers, as well as some Realtors(R).
I had a contract accepted for a buyer about two weeks ago and everything looked like it was going to be smooth sailing. And then the appraisal hit. I got a courtesy call from the appraiser and the gist of the conversation was the house wasn't going to appraise anywhere near the accepted price. So I get on the phone and let the listing agent know what is going on. "No problem" he says, "I'll let the seller know and we"ll get it taken care of." I'm thinking everything is cool and I go about my business.

The next morning I get an email from the listing agent and he's forwarded the sellers comments. And I quote "I will not lower the price to meet the appraisal, it's a joke to use foreclosures for comps. I just got the tax bill; they have it $106,189. When I insured it, they made me use $154,000 as their evaluation". Somebody got up on the wrong side of bed today huh.

While I understand his frustration, I don't understand his logic. He must think he has a monopoly on his very own real estate market. I think he has a monopoly on his very own universe. There is only one real estate market and this guy needs someone to tell him the rules to the game before he loses. Buyers don't care whether a house is a foreclosure or a regular sale. If they see two identical homes for sale and one is priced at 80K and the other is 110K...guess which one they are going to buy?

Real estate buyers could care less whether it's bank owned or not. It's our job to about the rules of this game. If we don't, they may end up losing the game like my Tampa Bay Bucs this year. They're 1-9 this year, by the way...not that I'm bitter or anything.



Image Courtesy of Kay Kim at Flickr