Would you pay over comps?

[Anonymous]

If so, how much more? 3% 5%? There is a home we really like. It is priced 5% over comps and the seller won't budge. Would you move on or give in?

[Anonymous]

Depends on the market. If inventory in your desired area and price range is quite tight, then I'd go a little over comps. I might go 5-10% over depending on how bad I wanted the house and what the prospects were for continued appreciation.

[Anonymous]

It really depends. If you like it, the location is good and the you know the inventories are low, go for it, i have seen people even paid more than 10% because once its sold is sold. Like the above said property will most likely appreciate over the course of time.

What area is that?

[Anonymous]

If you love the house, can afford it, and plan to stay there for a long time (versus it being a short term investment), then why not go for it?

[Anonymous]

Yes. If it is that off the market you can readdress it after the appraisal.

[Anonymous]

Go for it

[Anonymous]

We just did and thought we'd renegotiate when/if the appraisal came in low. Turns out our appraisal came in high even though all realtors involved thought we were 10% over.

[Anonymous]

PP, what explained the difference between appraisal and the calculation your realtor did based on comps?

[Anonymous]

Look, if you like it and can afford, why not

[Anonymous]

23:02 here. We were buying in a neighborhood filled with similar houses. None had sold over $480 k in 6 months (though some had this spring for 520). We offered $520 in a bidding war and house appraised over that. I don't understand why still, but I'm glad the mortgage came thru. This is for an out of area move, btw, when you wonder where we found a neighborhood at those prices.

[Anonymous]

Anonymous wrote:If so, how much more? 3% 5%? There is a home we really like. It is priced 5% over comps and the seller won't budge. Would you move on or give in?

There's your answer. The seller has more leverage than you.

[Anonymous]

Offering more than comps is one thing, but if you're getting a mortgage, your bank will want an appraisal. So if you do settle on a higher-than-comps sales price, make sure you are ready and willing to cover the difference if your appraisal is less than the sales price. Otherwise, if you love the house and can afford the higher price, go for it.

[Anonymous]

We paid close to $150,000 over the comps and our house appraised at even more. If you like it, get it.

[Anonymous]

prices are going up 1-3% a month, go for it with an appraisal contingency, if it doesn't appraise you can adjust the price

[Anonymous]

Anonymous wrote:prices are going up 1-3% a month, go for it with an appraisal contingency, if it doesn't appraise you can adjust the price

What if the seller does not agree to lower the price to the appraised amount? You then either have to buy the house and pay the difference between the sale price or appraised amount in cash or the seller can void the contract which might be worthwhile in a rising market. If you want the house you have to be prepared to pay above the appraised amount.