Paying 75K over Appraisal Value
We finally found a house that ticked all boxes. It’s in Bothell, WA In a prime location with great school ratings. We were the only ones placed offer on it and offered 10k less than ask price. Thought it’s a good deal as there was no bidding competition. In that area houses are going 200k above ask price in bidding. The catch is the appraisal came 90k less than offered price. I do have financial contingency. Found that it is registered as a single family detached condominium(DC). Sell is not budging because he thinks the appraiser should have compared it with single family residential (SFR) as well. But The appraiser compared it with only detached condominiums. Seller is reducing only 15k. When I looked at nearby houses sold, many of them are much smaller that were sold ~100k less than my house. So I am torn between taking that house as I will be staying there for 10 years and can easily recover that overpaid amount. If I back out, then I am taking chances, not sure if I will get a house again that I like in my budget, I will have to waive financial contingency, may be beaten by competition in bidding wars. Hence I am leaning on taking it. But on the other side ide, I am not able to digest the fact that I am overpaying 75k over appraisal value. Any thoughts/perspective will be really helpful!! #mortgage #housing #seattle #bothell
Bothell is not a prime location lol, there's nothing there. It's just overinflated due to housing shortage and FAANG employees FOMOing into deals.
It's THE prime location for the Desi people
Not everyone can buy in BRK
If it's registered as condominium, won't you face the similar appraisal issue when you sell in future? Do you have an experienced local realtor who can reason (if any?) on lack of offers for the house?
I wouldn’t pay over appraisal for condos. Open up Redfin, see if you can buy with the price for a TH (if you don’t mind sharing the wall) in a better location i.e. Kirkland/Redmond.
It’s under value because the seller wants to think it is a SFH but it is not. The bank is not stupid and the same thing will happen when you sell. Sounds like you need to walk away since the seller is not willing to understand what he has is not what he thinks.
When you say that houses in that area sell for 200k above asking, were those SFH or detached condo? Big difference. Even more important, don’t you think this seller listed the house a big high, and that’s why there was no bidding war? There are no bargains in the housing market. If you think you got a deal, it’s likely you haven’t fully considered some key factors other people noticed. Another question, what’s the lot square footage?
Built size is 2400 sqft and lot size is 5000 sqft. East facing house
If it ticks all the boxes, buy it. House is more than a investment. Don’t overthink. +75k in Bothell over a long period is not much
If you’re the only one making an offer, that should tell you how undesirable that house is
If that house checks all boxes, then buy it. $75k over appraisal value isn’t much in Bothell, heck people easily pay $100k over asking in those areas.
Remember you are not buying a SFH. Are you willing to pay this price for a condo? It’s bad idea, walk away.
It is a detached condo. Not the same as condo right?
It’s not same as SFH as well.
It ticked all the boxes and you were comfortable with the price and now can get it at a discount. If it’s really more like a SFH than a condo than that should also be apparent when you sell and reflect value accordingly.