I have seen a lot of posts here on AR complaining about sellers who just won't lower the price of their home even when buyers are not biting. I have also seen complaints around the web here and there about appraisal issues killing deals.
Most often though it is refinance deals that an appraisal condition may kill. I have run into a first time issue for me... I have a seller who wants to sell his home for $335,000.00 and a buyer who wants to buy it. The buyer does not have any complaints about cost of the home.
I have always been of the thought that "if someone is willing to pay the asking price then it must be worth it." ... Supply and demand!
3 - 5 homes above $300,000.00 sell in this area per year. I initially got 3 comps that I think were pretty decent comps. I was asked for 2 additional comps that must be within a 1 mile radius, dated within 6 months, same GLA, Amenities, condition, style, and age. No, I am not kidding they really asked me for that...
Only 5 homes sold for more than $300,000.00 in the past 12 months. I already had 3 of them... and the other 2 were both over a mile away, sold more than 6 months prior, had different GLA, Amenities, styles, the condition was not the same, and they were different ages.
The borrower in this case has a 785 mid credit score, over 109k in his checking account (need 82k to bring to the table), is putting a 20% down payment, and is fully income verified. This is the clean kind of paper that lenders should be trying to write... not finding excuses not to fund!
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