Thanks everyone....we let them have access for all their contractors (2) and should be receiving an offer today....as well as there is a good chace that there will be a second offer as well. Should be an exciting day. I appreciate the opinions. All that after 7 days on the market....I guess our hard work seems to be paying off.
Thanks for the answers....I just never encountered anything like this....the contractors they are bringing in are for carpet (all carpet i the house was replaced in the time I owned the house; 2.5 years) and outside paint which apparently they don't like the color (repainted by prior owner in '07) so neither is really anything I am really willing to take a hit for....I guess we'll be waiting for the actual offer. btw house is priced very fairly/low for the location and amenities it has....so again I guess they can reach but I know what I have.Need see the offer. At this point is just all the negative thoughts and speculation in our heads that drives us nuts
I understand the reasoning from their side to figure out all the cost before they are making an offer....BUT from my side I just spend $7000 to get the house ready for sale including new paint, new carpet, windows cleaned and yard taken care off....it's pretty much as immacuale as it will get.....
How about finding as lender that will do a manual underwrite? Yes you won't go though the automated system but if your house is worth that much you'll likely find someone taking on that risk.
The way I see this it is a No Brainer to refi if you do it right. The amount of time you'll stay in the house will matter very little and since the loan is only aged 1 year extending it out to the original laon term will matter very very little too....or you may finance it into a shorter term mortgage at not too much extra cost.What I would do is look at Mortage BROKERS, not local lenders and have them give you quotes for rates on a no fee refinance which mean absolutely Zero, NO money out of your pocket refinace and see what rates and payments they are able to come up with.....I would bet anything the rate with the LTV you are showing in your figures above and hopefully good credit rating will be significantly below the 4.875% you currently have....
You are focused on the wrong number...your bottom line number of $752k is all that should matter to you. As long as you get this it should be of no concern what kind of side deals the buyer and Realtor are making (as long as legal)...You should be happy that after years on the market you received and offer within the minimum parameters you had set to be met for you to sell....you should be very thankful that you have a (stupid?, smart?, enough) agent that is willing to forgo HALF of THEIR earned comission in order to help YOU to make the deal happen...take it an run
No entirely sure if those cosmetic (?) renovations would really add enough value to LTV anyways depending on how much you actually paid down, since you kept the origianl downpayment money to pay for renovations. I always thought that renovations needed to be along the lines of additions vs updates to raise value significantly. With an FHA loan does the current appraisal not stay current for a while anyways?
I'm not a mortgage professional but as far as I know you'd at least need a 3% downpayment along with some reserves and closing cost in hand to even think about starting the process. But to find out for sure try to contact a lender and have them tell you what the minimum requirements are nowadays....credit score seems on the low side too but not low enough to automatically disqualify you. Just don't expect to get the low rates you see advertised out there.Good luck and I'm sure a lender will soon chime in here too....
Fully agree. An appraisal should be standing on its own. The market around should set the price not the "arbitrarily" picked sale or offer price.
Vince since I just noticed that you seem to have both licenses....What was the requirements to receive and Appraisers license vs a Realtors license? Just wondering since it seems like most Realtors think they are the authority on real estate pricing....also then wondering why the lenders just send out another Realtor to confirm the values of the property instead of an expensice appraiser???I guess "value is in the eye of the beholder"