This has been a week of body blows. I’m lucky to be standing upright.
After I steeled myself to accept a low ball offer on the house, lower than we paid five years ago, because I thought it was worth it to move on to the next chapter, all the pieces began to fall into place. We made it through the inspection and a couple of minor repair issues intact, and I started thinning out, boxing up, and getting excited.
I thought I was going to change paths, go to culinary school in January and take my writing focus from healthcare to something I love, and to an industry that offers endless variety and opportunity. I wanted to experience training in a professional kitchen, work in the food industry, and create legitimacy and credibility for me to transition to that world.
And then the appraisal came in low. I didn’t see that coming.
In all the real estate transactions we’ve had over the years, we never had a property that appraised lower than the agreed on purchase price. To be honest, I guess I thought it was really a formality of the process. Never occurred to me that in one fell swoop, an appraisal could knock $40,000 off the value of my home.
Five years ago we paid $379,000, and there was never a peep of concern about the house appraising high enough to meet that price. Now when I’ve got an offer of $365,000 on the table the appraisal comes in at $340,000. How is that possible?!
I know there are all sorts of technicalities and variables that appraisers consider, and I know the appraisal has to hold up to the scrutiny of the lender’s underwriters. I understand it’s not personal, or based on subjective impressions about the property. But the thing is, the end result is personal to me. I just got knocked down by $40,000, and that’s before the realtor commission and closing fees.
It’s very personal.
The buyers came back with another offer, the exact amount of the appraisal. So now instead of a sucky $365,000, I’m looking at a horrible $340,000.
But wait, there’s more!
We met with the project consultant for our street replacement this week. The street we live on is built on top of a wooden trestle, and that structure is reaching the end of its safe life. It’s scheduled to be replaced, with the work starting next summer. This is a joint project between the city, state, and the federal government. And of course it’s all done under “eminent domain,” which means that we don’t have any choice in what happens. We take the value that is offered for the easement rights during construction, and for the damages that will occur to our property. The offer on the table is $20,000, most of which will cover the replacement costs for the garden and the planters in front of the house. And guess what? If we sell, that goes to the buyer. So we take a $40,000 hit, from the purchase price we paid to the price we’re offered, we still pay commission and our share of closing costs, and the new buyers would immediately receive $20,000 to compensate for the road project.
And…after we were told a year ago that the utility cables strung in front of our house, and actually all along the street, would be moved under the new bridge as part of the project, we’ve now learned that the move of the cables will end at our house. At. Our. House! Is this a conspiracy? I can’t believe that the view we’ve been looking forward to…ok, the view is great, but it would be much better without cables in the way…has now been cut, due to government budget constraints. But the rest of the street still gets that perk. It’s only the last few homes that will get to keep the street level utilities. What were they thinking when they made that decision?!
I think my head is going to explode.
I can’t impact the issues of the street construction. But I’m not selling like this. I’m not desperate. I don’t know what the answer is, what it could be. But it’s not going to work like this. I’m already feeling bled out. I can’t take any more.
The other fun fact is that we’ll have approximately 4-6 MONTHS that we won’t be able to drive to our house. We’ll have to park way down the street and walk in. Then we’ll have to hire our own contractor and come up with a design for replacing the structures that will be removed during the road and new sidewalk construction, so we’ll have that to sort out too.
My house is already about two-thirds packed and boxed. I’m in chaos at every level, I’ve neglected a lot of my personal priorities…blog, family, friends, changed travel plans at the last minute… in the past few weeks to make all this happen, and now it’s just a mess. I can’t accept this offer…too wrenching. But I also know that the appraisal is out there, and any other offer I get is going to face the same hurdle. It doesn’t matter what offer I have in hand with this appraisal number, and that’s impacted by recent sales in the area of homes with similar square footage and amenities.
How is it fair that my home’s value is impacted by other sales in the area? I understand there’s a process in place to protect buyers and to look at fair market value. But how is it fair that I’m losing all this equity? Where’s the fairness to me?!
I need to breathe, need to regroup, need to think. And I have to decide if I keep packing boxes or start unpacking.
I don’t have the answers today. I probably won’t have them tomorrow, or even next week. But I need to slow down, make a good decision, and then find my resolve.
And one thing I’ve learned…if I should ever have a house to sell again, I’ll pay for my own appraisal before it goes on the market so I know exactly what I have to work with. I don’t want to go through this cycle ever again. And let me be a cautionary tale to the rest of you. At least someone should benefit from this experience, and it looks like it isn’t going to be me. At least not financially.
But maybe this is giving me other skills, other strengths. I hope so. I surely need to find the silver lining, and the sooner the better.
Strength: a river cuts through rock not because of its power but its persistence.