All Forum Posts by: Jordan Decuir

@Dave Skow

That’s a fair point. I’m not concerned about what most seller financing deals have or don’t have though, the DOM on this property is already significant, that clock keeps ticking, and some insider info from the listing agent indicates that this seller’s bargaining positions isn’t very favorable. The red flags here are mostly on the seller’s side and if this is an issue for them I’ll be perfectly ok to walk away and pursue other opportunities that I’m already reviewing.

@Frank Greg

Yep, we’ve pulled the comp’s that we could and have developed a decent idea of what the value for this property may be. I’m adopting simple language from the existing Texas RE Commission and essentially drawing up a few-word Addendum to be included in the contract for this appraisal contingency.

@Jay Thomas

Thanks. Yes, in this case I’d be getting the appraiser’s opinion of value solely for my own purposes so I will definitely be selecting one myself.

@Chris Seveney

I agree for sure. I too recognize that value is subjective. To me, the appraisal provides some level of assurance, especially in this market. My main point though is that, at worst, it is a low-cost item that can provide me with some valuable benefit(s) in this scenario.

Thank you everyone for your input and perspectives. I also very much appreciate the challenges to the idea of getting an appraisal at all. To me, this is what makes BP so awesome!!!

@Jon A.

Valid point. To your point, I’m putting very-little stock in an appraisal in this case. I assume that it’ll appraise for my purchase price based on my due diligence. But, I’m not someone who spends all day, every day attempting to value homes, like an appraiser does. Therefore, I’d like to give myself another “out” (or potential bargaining chip) in the event that I missed something simple.

@Kerry Baird

These are some valid point that you’re making for sure. This property is not very easy for me to place a value on unfortunately, and especially in light of the shifts that we’re seeing in the market. My purpose here is to position myself in case I see a material discrepancy between my purchase price and the value that a disinterested third party (the appraiser) places on the property.

@Chris Seveney

Thank you. I’ll look to the language in the promulgated addendum and create an addendum for our contract to suit my purposes. Thank everyone for their input!

@Steve Vaughan

Thanks for the suggestion. Yep, I’ve spoken to the seller’s agent and the seller is willing to do seller financing.

I'm looking to submit an offer to purchase an MLS-listed property here in the Houston area using Seller Financing. I plan to obtain a formal appraisal on the property and give myself an "out" if the appraisal comes back below the purchase price. If I were using a third-party lender, I could use the "Right to Terminate Due to Lender's Appraisal" Addendum to achieve this, but there is no third-party lender in this scenario.

Are there any TREC or Texas Association of Realtors promulgated forms to allow me to do this easily?

@Eliott Elias

What are some of the objective ways to determine “cheap”?