Actually they might get frightened off indirectly. If the house they are buying was appraised at $55k less than they were willing to pay for it, is the house they are selling going to come in at $50k less than what they thought they were going to get for it? No offense, but that's what would be on my mind if I were them.

They're putting 20% down ... honestly, if the banks had been insisting on 20% down all along, we wouldn't be in this mess. Turning down strong loans is not going to help the banks dig out of the hole they are in with their weak loans.

 

Here's the latest as of Friday. They offered 7k over the moronic appraisal that they would pay out of pocket. Woopee. We are still 48k away from the original offer. No thanks, have a nice day.

Has anyone ever rented their place through an executive relo agency? Large companies put their execs who have transferred or working on long term out of town assignments into homes at the company's expense.

 

What a horrible situation. However, you may be onto the right track with the relocation rental agent.

 

Carmen, clearly you've been more successful in life than most so I'm certainly not going to advise you but I will share that the houses that have sold in my little neck of the woods have gone for approximately 25% what they would have been sold for three years ago. The one I'm aware of that has not dropped is still sitting there empty three years later and it has zero traffic looking at it.

 

Well, I don't know about that. But what I do know is the market is tanking bigtime and I'll let it sit before I give it away. Renting might be the way to go for a couple years until this mess sorts itself out.

 

Good Luck!

 

Are you saying the house is only worth quarter of what it was worth a few years ago or 25% less than what it was worth back then?

 

They are selling at 75% of what they would have sold for 3 years ago. As for renting, well it can work but I also have friends who have outstanding condo's (for example) in places like Clearwater, FL who have rented in the past and have decided against in now.

 

Why? Bad tenants?

 

The bank and the appraiser did not steal your deal.

To get a(ny type of) loan you have to prove the value of the collateral, you could not. No sales isn't a sign of a neighborhood in demand, QUICK SALES say it's in demand. NO SALES says no one wants the area.

Occassionally there is a neighborhood that simply has not had any sales for an extended period of time simply because no one has had to move in the past year and then you have an issue because you can't prove up value. Many times an appraiser knows there is value, but he simply can't prove that value.

It is a very basic banking rule that says a loan can't exceed the value of whatever is used for collateral.

It is the Realtor's job to show you all of this prior to listing your home. It is their job to give you an accurate idea of the value/ sales times/ and issues involved with the sale of your home. Your Realtor screwed up and you should report them.

And before you lay all this at the door of the present administration, this has been the rules for multiple administrations (as if the president actually got involved in the day to day functioning of the real estate industry).

I am an appraiser, lender, and a Real Estate Broker.