I'm confused: does the bank think that you're under-paying, or over-paying? Since they're the ones complaining, I'm assuming they think that you're over-paying -- an odd accusation, in this market. Did you hire the appraiser? Did you get to see the appraiser's worksheet, or any other explanation for what value the appraiser put on the house?
The bank thinks my offer was two high. The bank hired the appraiser. I did not get the worksheet yet so I don't have what they figured, but I can make a few guesses.
1) Nothing in that neighborhood sold for anything that high.
2) The house is one of the oldest in the neighborhood
3) It sold last year for $65,000
4) Despite that, the kitchen was mostly unfinished with no appliances. So if he spent money on the property, it probably was not on the kitchen. some of it was spent on laminate, because he did not know what to do with wooden floors, and did not actually install anything that cost more. Nor did he upgrade the electricity. So for all of me, let me have the freaking property, and by the time I am done, I can do the upgrades necessary to make this place a home.
But that is just my guess.
OK, now I am starting to sound a little bitter. I will stop now.
You have some leverage, as you said, with already having the loan approved. You can say that you have the money in hand and ready to go, but his asking price is not in line with the appraisal. This is a buyers market. He can take the money you offer NOW or sit on an unsold property for possibly the next YEAR because his asking price is too high.
I would hate to see you walk away, but you are in the best position to play hardball.
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1) Nothing in that neighborhood sold for anything that high.
2) The house is one of the oldest in the neighborhood
3) It sold last year for $65,000
4) Despite that, the kitchen was mostly unfinished with no appliances. So if he spent money on the property, it probably was not on the kitchen. some of it was spent on laminate, because he did not know what to do with wooden floors, and did not actually install anything that cost more. Nor did he upgrade the electricity. So for all of me, let me have the freaking property, and by the time I am done, I can do the upgrades necessary to make this place a home.
But that is just my guess.
OK, now I am starting to sound a little bitter. I will stop now.
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I would hate to see you walk away, but you are in the best position to play hardball.
or... drive the deal like you drive the track!
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I was just saying, the first group made me look better than the second group did. ;)
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