Rehab Resale
I purchased a property in December and I have a signed contract for the sell. I am using a realtor in this deal. A few days after the buyer agreed to the price, his bank sends a contract for me to sign that states that if the property does not appraise for the price that I am asking, the buyer can back out. It seems to me like someone else is dictating the price I can get. The buyer has already agreed to the price. Any suggestions on what to do if the appraisal comes in too low (which I think is a very strong possiblity)?
That is total BS. You know the bank can influence any appraiser to get the value they want. I would not sign, if I were you. However, if the price you are asking is way over the actual value of the house, there is possibility that the buyer may walk away after the true value is revealed.
As a seller you have no obligation to sign anything with the bank that your buyer applied with.
Comps should support the appraisal - was your realtor involved in this proces?
Are you speaking of a $2K or $10 difference in a low appraisal?
The bank appraisal has not been done yet but I was looking ahead for an option if the appraisal did come back low.
Whats unusual about an Appraisal Contingency?
Any good Realtor will know what to do.
How many days on the Appraisal Contingency?
How many days on Inspection Contingencies?
Inspection Contingencies are usually fast like 5 days and Appraisal Contingencies are longer like 7-10 days. Make half of the earnest money non-refundable with approval of the Home and Termite Inspections and Transfer Disclosures. Then the buyer has something to lose on the Appraisal Contingency... and send me half your agents commision.[ Edited by ChrisSanDiego on Date 05/26/2005 ]
OK, so I think I might be able to swing another conv mortgage with 20% down. I am thinking about going to friends about borrowing the $$ for 3 month term and offereing them a decent return. I am thinking about asking for 50k.
How should I approach this? How much is a nice return? Should I offer them a 2nd mortgage position on the property, and if so is that more difficult or can i have my attorney file it when he does all the other recordings?
Sounds interesting, are there any guarantees of sale. I f there is no sale do they "re" auction it for additional fees? I would just research it, talk to some sellers that have used this method before, then weigh your options again. I have had great success with agressive Real Estate Agents. I list my spec homes before the land is even cleared so by the time the foundation is in place I usually have a buyer.
Location, Location, Location.
We have a nice enough house.
Invested 6% of the purchase price in carpet, hardwood, and landscaping.
20% appreciation in 32 months.
Why?
Kids in our neighborhood attend one of the top 5 middle schools in the state. (Location....)
Houses are selling in a matter of days.
And also:
New subdivisions all around. Home prices starting at $350,000 and up to $700,000.
GREAT location to own a $235,000 house.
Exit strategy? Stay 20 years and regret not taking the equity earlier.
[addsig]
I also live in a very nice part of my city, with the " old money" as people like to say (SE county), but there are just not the jobs in Greensboro to support people buying houses in my price range. Houses above 300K stay on the market for 6-9 months before they sell, unless they are in NW Greensboro or Summerfield. But my question has more to do with spec homes and investment property type homes. Land in this area is VERY SCARCE so getting a lot
(parcel) is one thing, getting it in a nice neighborhood with supporting comps, is something else. Therefore, in order to generate cashflow a little faster, I was considering an auction.