Appraisal problem in rising market - Posted by Gary
Posted by Gary on January 31, 2001 at 14:14:22:
I am about to possibly lose a good deal. Contracted with seller to buy one bedroom condo at 66k; planning on putting 10% down with Greenpoint Mortgage; Monthly expenses with debt, PMI, condo fees, taxes, etc. will be $625 and I have a renter already lined up at $925. $3600 a year income on about $10k is not bad (6.6k down plus closing costs). Problem is that my market is rising and there are currently two other condos in contract at or near my price…but the last sale was in June at 55k. I think the appraiser is out of town and is not current with this market; Greenpoint will not only lend me $49.5. Luckily, my attorney is sharp and put in the contract that the sale was contingent upon a bank appraisal of $66k. But I don’t want to lose this deal…Seller will not come down to 55k and I don’t blame him. Any ideas out there in investor land?