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Sellers won't accept low appraisal
We rent a home that we found online FSBO. We came *this close* to renting-to-own, but declined after failed negotiations. We only rent. I'm curious to know what y'all think of what went down back then and what that might mean for the future.
The sellers were selling it themselves. Many of their online pics were stretched/photoshopped but we liked the house anyway (just seemed shady). During negotiations for a rent-to-own contract, they wanted us to agree to their price now, and everything that breaks from the time we move in is our responsibility. We got the to agree to anything UNDER $500 being our responsibility and large repairs being theirs. Fine. Then we hired an appraiser. His report came back at 14K less than their asking, so we offered them that. They declined and did not wish to seek their own appraisal. Their reason: Foreclosures were included in the comps and their laminate flooring (86 cents a sq/ft at HD) and stainless appliances meant it should be worth that much more. They sent a link to their lender's appraisal site, and it had it appraised for even lower!!! They wouldn't budge on their price, so we declined. I think they based their price on what the house next door and across the street prev sold for.
We've rented from them for a year and everything has broken in that time...the water heater (replaced), the furnace/ac (replaced), the roof (replaced), the dishwasher, fireplace tile, shower/tub faucet, the back door, the doorbell and even the backyard grass has all died (they plan to aerate/plant grass). They painted all the windows shut as well, which really bothers me. Don't even get me started on the way they painted...
I'm so so SO thankful we didn't agree to sign their original proposed contract - we'd be up sh!t's creek without a paddle from the repairs alone! I don't know what we would've done. Now that we rent, none of the repairs are on us.
What are your thoughts on this? If we were to buy the home in the future, would their repairs be worth the 14K they want? Just curious.
Re: Sellers won't accept low appraisal
OP- Are there any other houses in your area/price range? Honestly, it seems these sellers have an emotional attachment (or possibly have too much money invested) to the home and aren't willing to lower their price to be in line with the market conditions. If I were you, I would not expect them to get a dollar for dollar return on repairs like the HVAC, water heater and door. I'm not sure what the bathroom repairs were to know if it was an "upgrade" or just a repair. Also, since they painted the windows closed it's going to be a pain in the butt to get those open. They might need to be replaced and that can be pricey.
Rent to Buy deals tend not to be very wise choices. It is better to just rent until you are financially ready to buy. You were lucky they backed out. When you do buy - be sure to have a home inspection!!
And for the seller's information - unfortunately, the sale of foreclosures do impact the value of your home as well.
The sellers didn't back out. I did. My husband was like "let's just do it and get this over with" but I knew it didn't feel right. They even tried to roll in the extra $200/mo that would be given back to us at closing (for closing costs) to go towards the price of the house instead, so that they'd still get the amount they wanted. That seemed unfair at best. Either way, WE would be paying their exaggerated price. No thanks. We had walked away when we got a call asking if we wanted to rent outright instead.
The sellers didn't back out. I did. My husband was like "let's just do it and get this over with" but I knew it didn't feel right. They even tried to roll in the extra $200/mo that would be given back to us at closing (for closing costs) to go towards the price of the house instead, so that they'd still get the amount they wanted. That seemed unfair at best. Either way, WE would be paying their exaggerated price. No thanks. We had walked away when we got a call asking if we wanted to rent outright instead.
Accidental repost. Sorry folks.
Their reason: Foreclosures were included in the comps and their laminate flooring (86 cents a sq/ft at HD) and stainless appliances meant it should be worth that much more.
People are morons. I'm sure you know it doesn't matter what kind of upgrades the house has (unless they are structural). Things like that can be changed easily. Homeowner's insurance covers what's inside the house somewhat separately - appliances included. What matters is the condition of the permanant structure, the square footage, the land, etc.
Also, I can't believe people discount foreclosures. Um, hello, THIS is the reason foreclosures affect EVERYONE, not just the people losing their homes. I read an article with a guy who was selling his condo for like $500k and one that was the same footprint in his building (so the closest comp) had just sold as a foreclosure at $200k. He claimed his was nicer and not a foreclosure so it was totally different. No, it's not. When your comp is less than half of what you're asking, people will pass. It doesn't matter if it's a foreclosure. Foreclosures bring down housing prices across the board.
I bet one reason they were doing FSBO was because realtors thought they were nuts and needed to come down in the price, and they thought realtors were nuts because they couldn't/wouldn't do that.
40/112