By Autumn Allen | August 9, 2024
Everything is Going So Well?
When my seller reached out to me to list her condo in DuPont, I was so excited. My mom was in the Air Force, so to serve a military veteran is always the highest privilege for me.
Everything went swimmingly preparing the 3 bedroom 2.5 bath home ready for it’s debut. When we went live, everyone was coming to see it and the open house was so busy, which is always a great sign. We received multiple offers in just a few days, and then went pending shortly. Sounds like a fairy tell for the seller so far, right?
Warning Signs
Near the last third of the 30 day process I get an email saying with have a Tidewater situation. For those who haven’t heard of this, it’s the appraiser letting you know that you are NOT going to get the price that was agreed to by the buyer and seller. When you represent a seller, this is not good news. We knew that the market has been a bit slow for DuPont in 2024, but the value was WAY too low.
What can we do? At this point, the listing agent or buyer’s agent are encouraged to send a report that shows sold homes that prove the home is at least worth what we all agreed to sell it for. The appraiser will then review, and decide. Knowing the buyer’s agent was not available, I submitted the recently sold homes that came up on my report, and prayed.
Sinking Ship (Yes It Got Worse)
When you get a “Tidewater” the appraisal is not actually finalized. That’s why it’s so important to take action and submit the proof of value right away.
What happened next shocked me…
The appraiser not only ignored all the proof on that report, but he finalized the report at $25,000 below our contract price. We went pending at $470,000, and the value came in at $445,000.
To a seller, this is devastating. I couldn’t believe it!
Something told me, keep pushing. Something is not right here.
Always Ask for the Low Appraisal Itself
I emailed the buyer’s lender to get a copy of the appraisal. We have one more shot at this point to review and submit anything we think is wrong with the report.
I was reading the report until my eyes went blurry. But I refused to give up. There has to be a typo or something somewhere.
Right when my partner Amanda walked into my office, I found it! The error! (She always does bring the best energy!)
Please read this so that you know what is and is not OK with an appraisal:
The appraiser used an actively FOR SALE home listed at $435,000. This is a big no-no. Plus, there was a home right next door that sold already for $500,000 that had one less bedroom. Light at the end of the tunnel!
I reported my findings with screenshots directly to the VA (Veterans Administration) so they knew what was going on, and could have the final say.
This is lovingly and formally known as a Reconsideration of Value.
Praying again, this time with more hope.
Coming Up for Air
I could feel the stress from my seller so much that I also felt like I was just floating in and out of overdrive a lot during this one. And now days near the end and not knowing if we will be able to sell, it was grim.
But behold, the good news is in!
The text on the right is the real text I received from the buyer’s agent.
It worked, we won!!
*Insert First Breath in Many Days*
Never Ever For Any Reason Give Up
This is the lesson I learned here. Simple. Thanks for hearing our journey, and I hope you found it educational for when you may find yourself in the same boat.
Stay In Touch
Follow our channel here to get daily creative deals and to learn more about creative real estate.
Chat With Us
Click here to have a conversation with us, we would love to hear from you!
About the Author:
Autumn Allen
Hey Pierce County, I’m Autumn Allen! I'm a creative realtor here to challenge the norm of how we are taught about real estate, wealth, and financial freedom. I also like to share handcrafted information about the best selling strategies, home programs, and eateries around the Pierce and Thurston County WA area.
Links: Capital Gains. Disclaimer: I am not a CPA or attorney, information is solely for educational purposes.