Buyer Frenzy
I remember having a conversation with a gentleman from Ontario who was looking to buy one of the most expensive condominiums in arguably the most coveted location in Nova Scotia. Although he did not need an appraisal for mortgage financing, he wanted to order one anyway.
Why?
Why would he want to spend that kind of money to get an appraisal from a designated appraiser if a lender or mortgage insurer didn’t require one?
The reason is simple.
Human Nature
This client understood human nature, self interest, motivation, and the emotions involved in the buying process. In simple terms, he knew everyone around him—his agent, the sellers' agent, the developer, his family and friends, the neighbour, and most importantly himself—wanted the deal to go through. He had no qualms admitting he had fallen in love with the property and this gave him pause.
Avoiding Buyers Remorse
The gentleman wanted to get an unbiased opinion from someone who didn’t have a vested interest in the transaction to make sure he wasn’t overpaying or getting into something he would regret a year from now. We were more than happy to help.
Since this conversation, we were retained to appraise a property where a consumer had been swept away in buyers frenzy and agreed to pay several tens of thousands over the market trend for a property.
Realizing he was overpaying well after the conditions were met and before the closing, he decided not to honour the contract and walk away. He was subsequently sued by the owners of the property for loss. Contrary to our client above, this consumer ended up in this situation because he didn't heed his own human nature.
If you are looking for help from truly unbiased appraisers who don't rubber stamp transactions but are only concerned with the actual market value of the property, we are the firm for you.
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