February 12th, 2022 12:37 PM by Linda Holley
I have been curious if appraisals are coming in close to purchase price or below. One appraiser told me that it all depends on the type of home and the area; for example, Sellers are getting their asking price for expensive and waterfront homes. On the other hand, people who purchased a new "spec home" home for $250,000 two years ago are expecting to make $200,000, but the comps don't support it. So if a Buyer puts an offer in on one of these homes and has an appraisal gap addendum saying he/she will pay up to the purchase price--regardless of the appraised price--they could be in deep trouble. Buyers getting financing beware and don't overbid in multiple offer situations!
MLS statistics support this. Today I pulled data for single family homes sold the past 30 days in Sarasota: 3 bedrooms, 2 baths, built in 2003 or later. The least expensive home using that criteria was in the Fairway subdivision. It sold for $420,000. Most homes in the $400,000 to $500,000 price range sold for $10,000 - $15,000 above list price. All homes were financed, no cash deals; one buyer with a VA loan purchased at $29,000 below list price. VA wasn't going to guarantee a loan for more than the market value. Also, a veteran may not have the cash for the difference between the appraisal and the purchase price. Kudos to that seller for being realistic and helping out this veteran! She purchased it last year and still made $100,000 on the sale.
$600,000's to $800,000 homes brought cash buyers and a combination of cash and conventional. These homes were in these subdivisions:
Sandhill Preserve; Esplanade, Cobblestone, and Enclave at Ashton. All except the Enclave home were in Palmer Ranch (zip code 34238) and were built in 2007 and later. These homes sold for approximately $50,000 above list price. So cash is king, these buyers are not getting appraisals, which is playing a big role in driving up home prices unrealistically.
Please ask me if I can answer any questions about Sarasota or Venice real estate.
Linda Holley, Realtor, GRI, SRES, Fine Properties, Lakewood Ranch, FL 941-914-4914 www.LindaHRealtor.com
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