I feel the same way, but there are people out there who care about stuff like this. I know people in Newport, RI who will not sell to investors or those who will use the home for vacation properties.
Housing market
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I feel the same way, but there are people out there who care about stuff like this. I know people in Newport, RI who will not sell to investors or those who will use the home for vacation properties.
The house I’m in, I may burn down just to spite the city we are in. I’m not attached to them. The house I grew up in I will be taking a dozer to in the next couple years.
Funny, I take issue with people over pricing their houses in a pandemic and demanding unreasonable concessions.
If people pay then how is it over priced? If concessions are demanded and received then how are they unreasonable?
Hoping for economic meltdown isn't a smart play.
Anyone who bought post 2008 crash would disagree. If people are willing to sell low post crash how is that unreasonable.
If it’s priced appropriately, why won’t lenders issue a mortgage for that amount?
No kidding. Sellers are asking for appraisal waivers from buyers meaning appraisers are reluctant to value houses at what they're going for.
Multiple reasons. Appraisers can run a little behind. An appraisal is an estimate of value. The true value is what the market can support.
Lenders can only use the tools they have. Appraisals are one of those tools to help with a value estimate and to allow the collateral risk to be assessed. (Same thing with actual appraisers.... where's Argent for the expert opinion?!?)
If the transaction can't be completed at the higher price (either with additional cash from the buyer or a different buyer) then the seller can adjust the price to meet what the market supports.
Lenders have risk appetites. I'm not seeing 125% LTV purchase loans, but the day ain't over.
This isn't 2007 where lenders are going wild. Although one poster here is hoping for that type of crash.
True value then means whatever someone offers is the value right, why would there be added risk if it’s just the true value?
125% LTV implies the true value is less...
Offers or actually pays?
Lenders have to support their decisions. They have to support the value and at this time the good ol' appraised value is still a mechanism. There's also default risk and REO risks and all kinds of fun stuff. Investor regulators etc etc.
So folks with cash to add to the transaction can pay if they really want the home. If not then the market adjusts.
125% in the context of my post just means wild ass collateral risk.
Actually pays is probably most accurate here, people are actually paying extra on top of the mortgage because lending standards apparently don’t support market value. Given that, what’s really is market value?
You’re saying market value is what a buyer will pay, and then explain all of the safeguards that protect institutional implosion which says that’s not really market value.
From what I’ve seen they usually do. The people buying lately in CBus that I know that have gone way over asking have still gotten the appraisal back at or even slightly above offer.
I guess the stories I’ve seen involve people bringing cash to cover appraisal gap, so maybe CBus isn’t that hot of a market.
The people are bringing the cash to cover, but they always appraise at the sale price. Just had one couple we know go 30k over asking. Appraisal came back $1000 over the sale price.
Agreed, I never once heard of a Seller demanding that concession. I did see some ******* idiot buyers that would do that, or something like go 100k over asking price, cash.
In iowa it is the same. The only difference on two similar single family homes is the house that is owner occupied gets a small homestead credit. Usually around a couple hundred dollars or so.
Similar story. We went 42500 over asking, appraisal came back 1000 over our asking. I am 2 for 2 on house appraisals coming back 1000 over asking since 2016 in two different states.
I smell a conspiracy.