Losing $100k(?) to Save $21k

Rule #1 in real estate is that everything’s negotiable.

Rule #2:  there are times when it’s best to forget Rule #1, and preemptively take care of an issue before it threatens to torpedo a deal.

assessmentThat would certainly have been true in the case of a certain upper bracket Wayzata home seller recently, who reportedly negotiated for the Buyer to assume a $21k pending city assessment . . . but only after accepting a $100k discount from their asking price.

While that discount included some other items, it’s safe to say that getting the Buyer to assume the home’s $21k assessment — technically, the Seller assigned it to them — cost the Seller at least 2x – 3x that.

Can you say, “penny wise, pound foolish?”

See also, “Pending” vs. “Assessed” vs. “Payable” vs. “Levied” . . . Huh?!?” ; “Hail From Sunny Skies, Assessments From Thin Air(?)”; “Real Estate’s OTHER Acceleration Clause” ; and “Seller Disclosure — and Lack Thereof.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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