Profile picture for mrsadsk

The building we are purchasing in is 80% sold, but we can't find any public sale records?

The seller also wants 70% financing in case the apt is appraised for less than we offered.  The seller wants us to pay about $35,000 out of our own pockets (cause the mortgage loan won't cover it, they only covered the appraised amount).  We made an offer a little below the asking price, but this is making us think its worth less.

And then icing on the cake we can't find any public records of a sale on the other 6 apartments in the building.  HELP!!! We are first time home buyers!!!

  • January 28 2014 - US
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Answers (3)

Profile picture for wetdawgs
What you describe, I (a consumer who has bought and sold a number of residences) shudder in my boots!

As a first time buyer, unless you have huge resources, don't get in  a situation where you have to pay more than appraised value
  • January 29 2014
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This type of sale is always a risky proposition.  While the property may well be worth the asking price, and if it is located in the right area it may appreciate quickly, it still places an undo burden on you.  If it does not appraise and you close escrow, you will be immediately upside down. This is not a good situation for anyone to be in let alone a first time homebuyer. It may sour you on the value of home ownership.

I suggest that if you decide to go forward you include a clause in your contract that allows you to cancel if the property does not appraise AND receive a refund of any earnest money or down payment.  Then you will at least have the option if things do not go well.
  • January 29 2014
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If it does not appraise do you really want it for that price the seller wants??????? That does not make good sense to me.
  • January 29 2014
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