SoFla homebuyers increasingly paying above appraisal

Miami /
Oct.October 28, 2013 11:00 AM

As prices soar and land availability dwindles, home appraisal in South Florida these days doesn’t quite mean what it once did, the Sun-Sentinel reported. Some buyers are more willing now to pay above the appraised value because they say they have limited options: either pay the extra money or lose out to another prospective buyer. If they choose the latter, it’s back to the drawing board.

“You’d have to start the process all over again — the hunting, the multiple offers,” Joy Fischer, an agent with Coldwell Banker, told the Sun-Sentinel. “It would be hard to find another house.”

Jim Flood, a regional manager at Supreme Lending in Plantation, said roughly eight of 10 appraisals in the region equal or exceed the sales price that was agreed upon. If the appraised value is low, some sellers refuse to renegotiate the price down because there might be investors paying cash, in which case no appraisal is necessary.

Buyers tend to agree to paying above the appraisal, with the intent to put down 20 percent and live in the home for several years.

“If they’re going to be in it for the long run, who cares what values do in the short term?” Ryan Paton, president of Capitol Lending Group in Fort Lauderdale, told the publication. [Sun-Sentinel]Mark Maurer


Related Articles

arrow_forward_ios
A photo illustration of 1401 Southeast 15th Street (bottom) and 1300 Northeast Third Street (top) in Fort Lauderdale (Google Maps, Getty Images)
LA investor pays $30M for aging 90-unit Fort Lauderdale rental portfolio
LA investor pays $30M for aging 90-unit Fort Lauderdale rental portfolio
From left: Alta Developers’ Raimundo Onetto, Bizzi & Partners’ Davide Bizzi, and Silverback Development's Josh Schuster with 100 Southwest Sixth Street
Alta pays $21M for downtown Fort Lauderdale multifamily dev site
Alta pays $21M for downtown Fort Lauderdale multifamily dev site
Premium Digital Control & Automation's Marc Farbstein and Fortress Anchors' Dylan Hallerberg with 52 Royal Palm Drive (LinkedIn, Google Maps)
Smart home honcho buys waterfront Fort Lauderdale home
Smart home honcho buys waterfront Fort Lauderdale home
Dev Motwani and Nitin Motwani with a rendering of 530 North Birch Road (Adache Group Architects)
Motwanis win approval to expand planned Fort Lauderdale condo project
Motwanis win approval to expand planned Fort Lauderdale condo project
Sabadell Financial Center at 1111 Brickell Avenue in Miami, 110 Tower at 110 Southeast Sixth Street in Fort Lauderdale and The Gateway at Wynwood at 2916 North Miami Avenue in Miami with J.C. De Ona of Centennial Bank’s Southeast Florida division, Dominic Montazemi of Cushman & Wakefield, Chris Lee of CBRE, Shelby Rosenberg of R&B Realty Group and Todd Rosenberg of Pebb Capital (Google Maps, LinkedIn, Pebb Capital, R&B Realty Group, Cushman & Wakefield, CBRE)
South Florida office sales falter, despite strong leasing
South Florida office sales falter, despite strong leasing
Jose Luis Zapata with 505 North Fort Lauderdale Beach Boulevard (Orchestra Hotels, Google Maps)
No check-in zone: Fort Lauderdale Hilton-branded condo-hotel unit owners fight for access
No check-in zone: Fort Lauderdale Hilton-branded condo-hotel unit owners fight for access
Sharon Gustafson, Laurent Ouazana and 3916 Country Club Lane (Facebook/Sharon Gustafson, Twitter/@hellolab, Susan Rindley with One Sotheby’s International Realty, Getty)
French insurance CEO buys Fort Lauderdale estate
French insurance CEO buys Fort Lauderdale estate
Renderings of the residential tower in downtown Fort Lauderdale (ODA Architecture)
Brooklyn firm looks to build 47-story Fort Lauderdale tower
Brooklyn firm looks to build 47-story Fort Lauderdale tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...