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Author: wj4444ph Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127471  
Subject: offers and appraisals Date: 5/23/2001 2:02 PM
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Hi all, thanks for anwering my question about the fishy closing costs. We have looked at a few houses but aren't quite sure how to go about making an offer. I mean, we want to be sure that we are offerring somewhere around what the house is worth. From what I understand, we make an offer. If it is accepted, our lender will have the house appraised. Then we will be given the loan based on our sales price or the appraisal, whichever is lower. So my question is: waht if we make on offer of say $120,000 and it is accepted. The lender runs teh appraisal and finds out that the house is really worth $100,000. So we can only get a loan for $100,000. I've heard that we can have a clause in the contract stating that if the house appraises for less then the agreed upon sales price, the contract can be voided.

Even if that's the case, we would still lose the $250 we paid for the appraisal. This is my concern, I'd rather not lose $250 each time just to get an appraisal. Am I right here? or am I missign something? We have a 100% financing plan but with $9,000 closing costs so we really don't have much else available. Any help would be appreciated.
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Author: millerpim Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21411 of 127471
Subject: Re: offers and appraisals Date: 5/23/2001 2:07 PM
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I've never seen a clause that says if the property doesn't appraise for agreed upon price . . . generally what protects the buyer is subject to obtaining a loan of X amount. Obviously, if the appraisal comes in low, a loan of X amount is not possible. But yes, you will be "out" the appraisal fee. However, unless you are running around offering more than list price for property, the appraisal will probably come in at your agreed upon value.

You should ask to see "comps" before you write an offer. This will help to guide you in selecting a price that is somewhere around the listed price. Most agents don't pull values out of thin air. They are based on something tangible that an appraiser would also use. I wouldn't worry too much about appraisals coming in less. It doesn't happen very often.

elizabeth

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Author: tanaquil Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21412 of 127471
Subject: Re: offers and appraisals Date: 5/23/2001 2:11 PM
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From what I understand, we make an offer. If it is accepted, our lender will have the house appraised. Then we will be given the loan based on our sales price or the appraisal, whichever is lower. So my question is: waht if we make on offer of say $120,000 and it is accepted. The lender runs teh appraisal and finds out that the house is really worth $100,000. So we can only get a loan for $100,000.

My knowledge is very non expert, but...

It's my understanding that it is very, very rare for a house to appraise for less than agreed selling price. After all, that's the price that you & the seller fairly agreed on, which is the definition of fair market value.

You should be able to protect yourself by doing thorough comps beforehand to make sure that the house is not outrageously overpriced -- but you'd want to do that before making a fair offer anyway.

Good luck!

Tanaquil

PS. I believe the standard contingency clause stating "buyer must obtain financing meeting X terms" would cover the worst-case scenario of an underappraisal -- since the bank would refuse to lend you the full amount, you would in fact not be able to obtain the loan you applied for, and therefore would be able to get out of the contract.

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Author: ed6713 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21413 of 127471
Subject: Re: offers and appraisals Date: 5/23/2001 2:13 PM
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1) Put the clause in the contract about the appraisal/contract price you talked about. Always a good idea. Worst case you lose $250 but it's highly unlikely this will repeated time & again. In your example, I'd rather lost $250 than $20,000.
2) If you are dealing with a reputable buyers broker, the broker can easily estimate a fair offering & contract price for the house.
3) If you're dealing with the sellers broker, it's a little more iffy given they are in the paid employe of the seller.
4) If there is no broker involved at all, you're strickly on your own. You can do some research on sales at your local recording office if you know how. Most folks don't. Or you can get some help from someone who does. The problem with buying direct from the owner, is they sometimes ask an obscene amount for a property with the attitude that they really don't want to sell, but if someone is willing to pay $$$, the place is sold.

Definatly go with the appraisal/contract clause.

Ed

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Author: ed6713 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21414 of 127471
Subject: Re: offers and appraisals Date: 5/23/2001 2:23 PM
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Follow up:
As Elizabeth wisely pointed out, the financing clause can be the savior in some deals. But not always. Supposed you signed a contract for $100,000. Want to borrow $50,000. Apprasisal comes in at $90,000. The deal still flys because the lender still has a very good LTV. The financing clause doesn't come into play.
A common wording for the appraisal clause would be something like this " This contract is subject to the appraised value based on the appraisal to be ordered by the lender, being at least equal to the contract price. If the appraisal is less than the contract price, the buyer may, but is under no obligation to, cancel this contract and receive a full refund of the deposit" Need good attorney words, but this is the essence of what you want to say.
Now your 100% protected.

Ed

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21428 of 127471
Subject: Re: offers and appraisals Date: 5/23/2001 10:44 PM
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Hi wj,

The appraisal value contingency is rarely seen, EXCEPT for deals doen without a 3rd party lender (such as seller contract deals, etc.)

Best to you,
Dave Donhoff
Lic. Mortgage Broker

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Author: anncan2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21449 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 10:01 AM
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whoo!!! $9,000 closing costs. Where are you getting the loan from, Uncle Vinny??? That is way out of line. shouldn't be more that 1.5% of the purchase price (i.e 150,000 = 1500.00), unless you pay a point...but only if you plan on this being your permanent home.
Good luck!
Realtor from Illinois


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Author: Selphiras Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21450 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 10:10 AM
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Well, what is included in the closing costs? I think of them as everything that has to be paid that day--insurance, taxes, escrow, interest, fees, etc. Everything we have to pay to close on the house (except the downpayment).

On our $93000 this is about $3000-$4000 dollars when everything is included--pr about 3-4%. I had thought this is what people meant by closing costs, by our realtor also was not counting everything and talking about it being in the 100s of dollars. That certainly wouldn't even include the downpayment! I believe he was figuring fees only.

Selphiras

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Author: jdorn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21451 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 10:10 AM
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Appraisers check what other similar houses in the area have sold for, and then form their opinion of the value of the subject house. As a suggestion, ask someone (appraiser, lender, broker, etc.) to see what an appraisal report looks like. You can then do your own estimate, by doing your own comparisons. Your results will not be as accurate, but they will be ball-park. If this is too hard due to time constraints or other factors, talk to a real restate broker (the seller usually pays the broker). Brokers do Comparative Market Analysis (CMA) for sellers, when they get the listing. That is how they developed the asking price. Ask the broker to see the CMA. Better yet, insist on it. With luck, the CMA might also show the asking prices and selling prices for the comparable homes, so you can figure out the percentage of the asking price you should offer. Good luck.

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Author: Ammer2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21452 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 10:23 AM
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Well, in most states costs for either side are negotiable to be paid by either side. If the seller wants the offer to work, perhaps you can offer $120000 with the seller paying the cost of the appraisal regardless of whether the transaction closes. An additional benefit is that the seller and his agent will work very hard to justify the higher appraisal, by putting the house in very good condition, providing comparable sales which the appraiser may not have access to (FSBO's and private sales).

The real question is are you getting good representation when you are offering more than what the house will appraise for? In most if not all states by now, you can have buyer representation. This agent works for you and should be able to help you formulate an offer that works to your benefit and have a better chance of appraisal. Again, the cost of the buyer's agent should be paid on your behalf by the seller. After all, he usually has agreed to such an arrangement when he listed the home with a real estate agent.

This is not an advertisement for Realtors, but are you really comfortable making the biggest purchase of your life without expert negotiators working for you?

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Author: jfruhbauer Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21454 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 10:46 AM
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I think of them as everything that has to be paid that day--insurance, taxes, escrow, interest, fees, etc. Everything we have to pay to close on the house (except the downpayment).

When our lender told us what to bring at closing (i.e. for "closing costs") she included the downpayment as part of what we should have the check written out for (we have only given the sellers "earnest money" at this point).

Jennifer

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Author: brettbesser Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21461 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 11:46 AM
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You will need to do enough homework so you know the approximate value before you make an offer. There is no way you should make a 120K offer on a property that is only worth 100K. If that happens the $250 that the appraisal costs is money well spent to ensure that you didn't make a 20K mistake. If you dealing with a reputable realator you should not fall into situation since they should know the values of the area well enough to know if your offer is way off base. They can't tell you what your offer should be but they certainly can pull all the sales for the area for the last year and can pull the other comparables that are available in the area. Figure price per square foot for your area and use that as a guide when making your offer. Look at your previous appraisal and see what the appraisers use as a guide when making thier appraisal. This will surely get you in the approximate range for and offer. This is probably the biggest investment that you will ever make so do some footwork and don't be in a hurry to buy. That deal of a lifetime will generally come around again and this time you will have the knowledge to be certain that what you offered was really what it was worth. If you get lazy and decide to let the appraiser do all your foot work for you, then $250 is a bargain.

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Author: pgould66 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21465 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 12:56 PM
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First recommendation would be to find a realtor that you trust, although that is easier said than done, because a good realtor can walk through a house and tell you approximately what the house should appraise for. While looking for the realtor of your dreams, I've only found one so far that I truely trust watch out for my best interest vice his, in the meantime there are a number of websites that will give you an approximate value of houses in the neighbohood or possibly even for that particular house based on the address, age, zipcode, etc.. .

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Author: jnsherlock Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21469 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 1:23 PM
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It should really come as no surprise that this clause is rarely seen in purchase contracts. Realtors only get their commission if the deal closes and the higher the purchase price the more they pocket. Such a clause could potentially cause the loss of the sale therefore they have no incentive to protect the buyer by using it in the purchase agreement.

There would be no reason for any seller to object to the inclusion of this clause as a condition of the sale unless there is fear that the buyer is paying more than the property is worth.

I have demanded that such a clause be written into every purchase agreement into which I had entered as a buyer and will be doing the same next week.

In my lastest case, the house is a new home being sold by the builder. I have no way of knowing if he has priced the home at a reasonable price as it is a new home in a historic district of mostly old historic homes. There is nothing to use as a comparison in the neighborhood.

On another note. I find it disturbing that appraisors always are aware of the purchase price before performing the appraisal. I am going to request that the lender not disclose the purchase price to the appraisor and see if they will comply with my wishes. I want an umbiased appraisal not one that is tainted by prior knowledge of the purchase price. Has anyone else done this?

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Author: Athalon One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21477 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 2:34 PM
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"On another note. I find it disturbing that appraisors always are aware of the purchase price before performing the appraisal. I am going to request that the lender not disclose the purchase price to the appraisor and see if they will comply with my wishes. I want an umbiased appraisal not one that is tainted by prior knowledge of the purchase price. "

I totally agree. When I was shopping for a home recently I saw 'dogs' (relative) priced just a little below what my new home appraised for. The seller accepted (unexpectedly to me) my first offer which was more than $ 25K below asking price (The home was on the market for >6 months). I thought (and I still believe) that I got a bargain - based on the fact that other homes which were priced similar to my offering price were 'dogs' in comparison. As I didn't hang around, I dont know if those 'dogs' actually sold for that much. But I'm talking more than just a few homes- I'm talking 20+ homes I looked at. Hence, either I'm wrong or the sellers agent for all those homes are wrong. I'm not being biased in that one person (I) may like something totally different to somebody else. The home I bought is in a historically more expensive district than where the 'dogs' are located.

The point I'm trying to make is that I think the appraiser just wanted to make sure that our home was worth at least what we were going to pay for it. I believe he's wrong in his appraisal ( at only $2K more than we paid). Some might respond that fair market value is what a buyer....etc. you know the drill....this is true, but the appraisal should be based on historical (most recent) values, not the current (i.e. this particular home) value. Certainly, our new neighbours are not going to be happy, as this affects the value of their home and the value of future home sales in the area, but not ours. Just my opinion.

Athalon

PS, A similar home to ours across the street sold for $25k more just six months ago. Maybe the market is REALLY soft since then, but not that much I think.

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Author: wj4444ph Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21478 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 2:47 PM
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whoo!!! $9,000 closing costs. Where are you getting the loan from, Uncle Vinny??? That is way out of line. shouldn't be more that 1.5% of the purchase price (i.e 150,000 = 1500.00), unless you pay a point...but only if you plan on this being your permanent home

Well I posted about this a few days ago, my lender is asking for 14months taxes and insurance prepayment at closing. All the fees come out to a very reasonable $3500, then tack on another $5500 for the 14months prepayment andd we have $9000 closing costs! I would balk at this but believe that I have a very good lending plan here. I have 100% financing, no PMI at 5.95% 5/1 ARM. So I'm very happy with that, just wish the closing costs wouldnt be so painful in the wallet. Do you guys think that paying 9000 at closing is worth it to get this plan? I have shopped around and this plan is by far the best I've come across.

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Author: captain23m Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21489 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 3:55 PM
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The most important thing to remember when buying a house is that the Real Estate Agent works for the seller, not the buyer. With that in mind, you can add several clauses to the contract that allow you to back out under certain conditions including the ability to obtain adequate financing. In most cases an appraisal is just a formality and a way for the bank to make more money.

One way to make sure your offer is in the ballpark is by calling the City Clerk and asking for the Assessor's office. If you have an owner's name or property address, you can get the value that the city uses when figuring taxes. This can give you an idea of how much the value has gone up over the past several years. You may also be able to find out how much the current owner paid for it.

You can save a few bucks on taxes by offering to pay the broker's commission. For example: If the broker's commission was 10% and you bought the house for $100,000; they would get $10,000 the owner would get $90,000 and you would pay taxes on $100,000. On the other hand, if you paid the broker's $10,000, the owner would still get $90,000; but you would only pay taxes on $90,000.

I hope some of this helps. Good luck!

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Author: Squawk1200 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21499 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 5:22 PM
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Certainly, our new neighbours are not going to be happy, as this affects the value of their home and the value of future home sales in the area, but not ours.

Around here, the sale price of a home affects these things; the appraisal does not. No one knows what a house appraises for in a private appraisal except the appraisers, the lenders, and (perhaps) the parties to the transaction. The prices of homes are a matter of public record (true here, but not everywhere).

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Author: Athalon One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21505 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 6:57 PM
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Certainly, our new neighbours are not going to be happy, as this affects the value of their home and the value of future home sales in the area, but not ours.

Around here, the sale price of a home affects these things; the appraisal does not. No one knows what a house appraises for in a private appraisal except the appraisers, the lenders, and (perhaps) the parties to the transaction. The prices of homes are a matter of public record (true here, but not everywhere).


Yes, I meant the sale price and not the appraisal that is going to affect the appraisal (and sale) of future homes in the area. In my case, the appraisal and sale are almost similar.

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Author: REALTOR0 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21512 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 10:23 PM
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HI.

I AM A WORKING REALTOR IN VIRGINIA. THE QUESTION YOU ARE CONCERNED ABOUT WOULD HAVE ANSWERED BY ANY "REALTOR" IN THIS AREA AND YOU WOULD NOT BE ASKING SUCH A QUESTION AS THIS.

SUGGEST YOU FIND A PROFESSIONAL REALTOR IN YOUR AREA AND TALK THINGS OVER AND TRUST WHAT YOU HEAR.

A REALTOR IN VA.

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21518 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 11:11 PM
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Hi jn,

You said;
On another note. I find it disturbing that appraisors always are aware of the purchase price before performing the appraisal. I am going to request that the lender not disclose the purchase price to the appraisor and see if they will comply with my wishes. I want an umbiased appraisal not one that is tainted by prior knowledge of the purchase price. Has anyone else done this?

Sure! In fact, here's the trick to save a few bucks. Find out who the approved appraisers are for your lender, then outside and seperate from your lender order your own appraisal to be done. You'll have to pay up front, rather than waiting to closing... but there will be no sale contract offered, since you are the orderer and have control. Then, if all is copacetic, you can "release" the appraisal to be re-typed in your lender's name for an extra $50 or $100, and away you go!

Go gettum, champ!
Dave Donhoff
Lic. Mortgage Broker

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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21519 of 127471
Subject: Re: offers and appraisals Date: 5/24/2001 11:15 PM
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Hi REALTORO,

On behalf of myself (if not everyone else), welcome to these boards! We love having actual professionals in the industry on board to tackle the tough questions right here... not just recommending it be handled "out there." I, myself, am looking forward to tossing you a few from time to time from our business.

Now... that being said... TURN OFF YOUR CAPS LOCKS!!!!!!!!!

Cheers,
Dave Donhoff
Mortgage Broker going blind from computer number crunching...

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Author: anncan2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21574 of 127471
Subject: Re: offers and appraisals Date: 5/26/2001 1:07 PM
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ahhh.. i see said the blind man... you are paying up front interest to get the lower interest rate. what you may want to consider is figuring out how long you may stay in the home and divide that 5500 prepaid by the numer of months (i.e. 5 years = 60 months, 5500 divided by 60 = $91.66 per month) now calculate what it would cost without the prepaid. Ask the lender what his adjustable and fixed is without points and figure out what the paypment would be with that 5,000 thrown in towards the downpayment. compare and see if you are really saving anything. As far as the 14 months taxes, you will receive a credit from the seller which will be prorated (usually at 105 or 110%) till the day of closing for taxes because taxes are paid after the year is over. here in cook county Illinois, it is february and september but we don't know the full years taxes for the year till the september bill comes out. Example: seller paid February bill of yr 2000 in 2001 they have not received september bill.. you are closing at end of June...In yr 2000 the total taxes were 3,000 (proration at 110% is 3300)basically he has last 6 months of 2000 and first 6 months of 2001 due...full year...you will receive a credit at closing for 3300. which goes into the escrow for those bills when they come out. You add 2 months to that yourself to start saving for 2001 tax bill and bring in a pd up homeowners insurance policy with another two months for next years bill.

Good luck

realtor in illinois

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Author: wingedinvestor One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21575 of 127471
Subject: Re: offers and appraisals Date: 5/26/2001 1:12 PM
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5/26:

Dear Wj: Well, you certainly have received a lot of worthy opinions and very good suggestions. I have some thoughts. First, I'm really not sure you should be paying 14 months taxes-is that standard in your area?

Second, and this has been said by more than one person, if you are using a realtor there should be no question in your mind as to the asking price vs. your offering price. Are you on your own? Do you have a good realtor? What is s/he telling you about your offer vs. what the comparables are?

Third, this is important: everything is negotiable. Don't take it as gospel if someone says that some things aren't seen in contracts. Everything and anything can be included in contracts and negotiations. Depending on who asks, how they ask, why (such as your concerns), and who has the upper hand. You could even ask for $250 back from the potential seller in the event the house doesn't appraise for the offered price! I've seen it. But this may not be the market condition or the seller to insist upon this term.

Fourth, I wouldn't knock appraisers or realtors for that matter. And, in fact, good ones are not hard to find of both varieties. The appraisal market has knocked out a lot of the quick buck artists since much of the real estate industry is going to computer-generated comparables. Unfortunately, it took some good people as well. Realtors can be judged by many criteria but one who is consistently a top performer for many years (and has been thru at least one, severe real estate downturn in your area) means something. I am not a realtor, but I've found good ones in every city where I've lived.

Finally, I don't have a problem with the terms of your loan. But, 100% financing sounds like it may be difficult for you to come up with extra money should the house require it. Please be careful; houses always have something going on (read: going wrong) when you least want that to happen. Plan for it. Do you have sufficient income to cover it on a monthly basis?

Good luck.

WI

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Author: anncan2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21576 of 127471
Subject: Re: offers and appraisals Date: 5/26/2001 1:18 PM
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wow! where do u live?? 10% comiissions!!! I wish LOL! Anyways it is not true that realtors work for sellers in all areas most states have changed to designated agency, which basically means you work for who you are working with (buyer agent or seller agent) sellers still usually pays the comission though. If you have a good agent they should be able to pull up the tax bill for you, to show you past purchase price and evaluation. However, the assessed evaluation and the valuation of the house are generally not even close. My home is assesed at 76,000, It currently has a market value of approximately $135,000. The assessors have there own way of figuring things out and even if you paid the comission you would still pay taxes based on what the assesor thinks it is worth

Realtor in Illinois

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Author: wj4444ph Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21589 of 127471
Subject: Re: offers and appraisals Date: 5/27/2001 12:04 AM
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Dear Wj: Well, you certainly have received a lot of worthy opinions and very good suggestions. I have some thoughts. First, I'm really not sure you should be paying 14 months taxes-is that standard in your area?

To be honest, I'm not quite sure if its standard in my area. However, i've decided to accept that I will have to pay 14 months taxes. This is because of the very good mortgage plan I've received (I feel its good anyway, 100%financing, no PMI at 5.95% 5/1 arm)

Second, and this has been said by more than one person, if you are using a realtor there should be no question in your mind as to the asking price vs. your offering price. Are you on your own? Do you have a good realtor? What is s/he telling you about your offer vs. what the comparables are?

since my post, I've asked my buyer's agent the same question about a possible low appraisal. She has said that its very unlikely that it will come in low (same as many Fools said here and you guys really put my mind at ease).

Finally, I don't have a problem with the terms of your loan. But, 100% financing sounds like it may be difficult for you to come up with extra money should the house require it. Please be careful; houses always have something going on (read: going wrong) when you least want that to happen. Plan for it. Do you have sufficient income to cover it on a monthly basis?

I feel comfortable with my potential payment structure. I wuold be required to pay around $1000/month (PITI) which is very doable for me (its 20% of my gross income). Being a first time buyer, obviously I have never been through the process of moving and all the subsequent initial expenses as well as the emergency expenses. I think I'll be fine here as far as having sufficient funds to cover these expenses tho.

Thanks for the great advice. Not sure if I mentioned this in my last post but our offer was accepted. Next step is to apply for the mortgage (we're already prequalified so I hope this isn't a big deal). Hopefully, the appraisal and inspection go well .... Not really sure what to expect, its all new to me ...


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Author: 18delta Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 21603 of 127471
Subject: Re: offers and appraisals Date: 5/28/2001 7:41 AM
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You can find a realtor to represent your interests and sign a Buyer's Agent Agreement with him/her. An experienced agent ought to know or be able to find out the fair market value of a property you're interested in buying. I assume you know that ANY licensed realtor in your area can help you purchase a home even thou they did not list the home for sale. Another way is to obtain property tax information from the seller. Armed with property tax identification reference information [number,etc],you can contact the appropriate county tax folks & determined their evaluation method. As a BUYER,you're in the driver's seat unless their are a great many more buyers than homes for sale in your area. You can make your purchase offer based on any reasonable contengencies you want to include,.i.e.,seller splits cost of appraisal,contract void if sales price exceeds appraisal,etc. . Hope this helps.

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