Private Sale Vs Real Estate Agent Question for you

April 16th, 2011

Here’s the situation.

You have placed your home on the market privately, commonly referred to in overseas markets as a FSBO.

After 5 weeks on the market,  you accept what you consider a satisfactory offer.

It has a couple of conditional clauses, one being bank finance. Unbeknownst to you the LTV on the mortgage required to complete the purchase is quite high.

So because of this, the bank or finance company requests/requires a valuation before you get the final ok.

Fair enough, it comes in, the lender is happy and the sale goes through…………now everyone’s happy……or should….???

The bank/lender was happy because the “sale price = their valuation”…..but what if…???

via Twitter

The above tweet appeared recently, and has to make you wonder about all of the story above, doesn’t it?

The Auckland based writer above mentioned “the highest independent valuation” and I’m wondering therefore if there weren’t more than one valuer involved here?

Would be interesting to know if it was a private sale or one conducted by an agency?

My question questions?

Were the best interests of the seller realised in this case?

What about the buyer, had they of gone to the table with a “pre-approved loan” based on valuations, how would they feel?

Could this happen anywhere in NZ, or is in more applicable to a “moving market” like we are currently seeing in Auckland, Nelson and a couple of other spots around the country?