Following advice provided by this realtor, we lost our earnest money. The property had been renovated, leaving it unique as a large, downtown, historic structure with few rooms. As a result, no adequate comparable properties could be found to support the estimate given. She advised us to let the process extend past the deadline, confident that we would prevail. As a first-time homebuyer, I deferred to her judgement. While she was quite pleasant, we were, needless to say, extremely disappointed.More Less
I don't doubt you remember this with disappointment, as I do as well. In my 10 years in RE, this is my only transactions that has every lost earnest money. Unfortunately, I was being informed by the mortgage CO, who was confident that it would close. I wasn’t told until the very end that none of their underwriters would approve of the comps, nor would the PMI providers, making the loan impossible. I'm pretty sure the broker had also never seen this happen, as 2010 was particularly tumultuous in the finance world. This is probably why he felt going forward was not going to be a problem. When you remember this transaction please also try to remember the good part, that the home that you DID purchase, we negotiated the price down, and with the generous closing costs we also negotiated for the sellers to pay on your behalf, you were 21k to the positive of your appraisal, which at that time, and still today, is a large number as appraisers do their best not to allow any equity.