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No need to kill anyone. I'll give you a straight answer/opinion. YES, you should walk away if there is ANY gap between the appraisal and what your contract amount is.
Quote:
Originally Posted by MadManofBethesda
ANY gap? Really?
So if the OP put down an earnest money deposit of $10k and the appraisal comes back with a $7k gap between the purchase price and the appraised price, your recommendation would be for the OP to walk away and take the $10k loss?
Quote:
Originally Posted by Chas863
You said that you would kill for a straight answer. In my post prior to the one you responded to, I gave you as straight an answer as possible. Now are you complaining because you didn't like the answer?
BTW, care to tell us how much your earnest money deposit was?
Quote:
Originally Posted by Chas863
"We"????? Who is "we"? Did you have a licensed home inspector inspect the house or is "we" you and several friends? BTW, did you waive the right to all inspection/condition issues too?
Just in case you missed it in my last post, would you mind telling us how much earnest money is at stake?
I think that's it ironic that you keep badgering the OP to tell you how much the EMD was while at the same time ignoring my question to you. So I'll ask it again:
ANY gap? Really?
So if the OP put down an earnest money deposit of $10k and the appraisal comes back with a $7k gap between the purchase price and the appraised price, your recommendation would be for the OP to walk away and take the $10k loss?
I think that's it ironic that you keep badgering the OP to tell you how much the EMD was while at the same time ignoring my question to you. So I'll ask it again:
ANY gap? Really?
So if the OP put down an earnest money deposit of $10k and the appraisal comes back with a $7k gap between the purchase price and the appraised price, your recommendation would be for the OP to walk away and take the $10k loss?
That's why I'm asking the OP how much the earnest money deposit was. I think your "guess" of $10K is way too high for reality in this situation. I'll bet it was closer to $500 and maybe not that much.
Yes, I think the OP should walk away from a relatively small EMD because I think that he/she has agreed to overpay by a lot more than that. Better to walk away with a small loss and learn a lesson than to incur a much larger loss and regret it for years to come.
No, I don't have a crystal ball to the future, but I think the past has provided some excellent guides as to what could and perhaps is likely to occur... and it doesn't look good for this purchase. My opinion.
That's why I'm asking the OP how much the earnest money deposit was. I think your "guess" of $10K is way too high for reality in this situation. I'll bet it was closer to $500 and maybe not that much.
I'll take that bet. As I'm sure our local realtors on here will agree, in our market a $500 ED is a joke. I've no doubt that's true in many many many (most?) other areas.
I'll take that bet. As I'm sure our local realtors on here will agree, in our market a $500 ED is a joke. I've no doubt that's true in many many many (most?) other areas.
I agree that $500 EMD is a joke, but most purchase agreements are written by realtors who simply do what other realtors in the area do. In my real estate experience in several states plus discussions on this forum, I have found that EMD is often $1,000 or less on residential houses.
Personally, I would never accept $1,000 as EMD on any property that I am selling, but many people do.
Since the OP has apparently gone silent and not answered any questions recently, we may never know who is correct here. Also, everyone is giving their opinion as to whether the OP is making a smart move, and we won't know the answer to that question for several years. Personally, from what I can see of the area and prices, I think that the OP is overpaying for the property, but that's my opinion.
That's why I'm asking the OP how much the earnest money deposit was. I think your "guess" of $10K is way too high for reality in this situation. I'll bet it was closer to $500 and maybe not that much.
Yes, I think the OP should walk away from a relatively small EMD because I think that he/she has agreed to overpay by a lot more than that. Better to walk away with a small loss and learn a lesson than to incur a much larger loss and regret it for years to come.
No, I don't have a crystal ball to the future, but I think the past has provided some excellent guides as to what could and perhaps is likely to occur... and it doesn't look good for this purchase. My opinion.
I feel like you have made some pretty big assumptions first.
My EMD is 5800, and already paid. Sure, i have my inspection period still (with the inspection passing flying colors), and could still walk away if i needed too.
Also, I am paranoid, mostly because of my experience in Oct. That was my first real go at anything, and on that one, though not in a bidding bar, the home wound up under appraising by 26. This was due to the size being misrepresented; needless to say the home could not be compared to what we were expecting.
In this case, i bid, and won, at the asking of 290. No crazy bidding, nothing else. But having had to deal with it before.. well, once bitten, twice shy. And now that i don't have that safety factor... yes, you bet your ass i am paranoid. I would love nothing more than it hitting the mark, and have no problem affording it (it comes out about $200 more a month than my current rental).
Just a couple of comments/questions. I thought you waived the appraisal on your offer so how can you walk away?
Also, when I enrolled in City Data (sponsored by Realtor.com) I agreed under the Terms of Service back then to only used links from www.Realtor.com and no other real estate websites. Wondering if this has changed since the OP used Zillow…..
Since the OP has apparently gone silent and not answered any questions recently, we may never know who is correct here. Also, everyone is giving their opinion as to whether the OP is making a smart move, and we won't know the answer to that question for several years. Personally, from what I can see of the area and prices, I think that the OP is overpaying for the property, but that's my opinion.
Gone quiet? I posted a few times yesterday, and have been working today. Sorry for not living on the forums to fight back all the negativity, but keep having fun with that...
I feel like you have made some pretty big assumptions first.
My EMD is 5800, and already paid. Sure, i have my inspection period still (with the inspection passing flying colors), and could still walk away if i needed too.
Also, I am paranoid, mostly because of my experience in Oct. That was my first real go at anything, and on that one, though not in a bidding bar, the home wound up under appraising by 26. This was due to the size being misrepresented; needless to say the home could not be compared to what we were expecting.
In this case, i bid, and won, at the asking of 290. No crazy bidding, nothing else. But having had to deal with it before.. well, once bitten, twice shy. And now that i don't have that safety factor... yes, you bet your ass i am paranoid. I would love nothing more than it hitting the mark, and have no problem affording it (it comes out about $200 more a month than my current rental).
Good luck! Let us all know how the appraisal turns out?
How much would you have to come out of pocket before you couldn't/wouldn't close the sale? That's the question that needs answering. You're on the hook for ~$6K if you walk, so what's the deal-breaking point for you regarding any appraisal shortfall?
Gone quiet? I posted a few times yesterday, and have been working today. Sorry for not living on the forums to fight back all the negativity, but keep having fun with that...
I stand corrected on that point. You did post last at 9:21 yesterday evening, but it just seemed longer to me. My apology.
And thanks for answering the EMD question.
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