As unexpected 'Spring-like' weather is penetrating the Midwest, many are wondering, How Do I Avoid A Lender Killing My Deal. Although a couple weeks ago this topic was brought up by a Realtor client who was struggling to keep their deal in life-support and out of cardiac-arrest, the post is being brought back to life and reincarnated
Just this past week, we've had conversations with 3 successful Realtors in the Chicagoland market who have experienced recent transactions coming to an early death due to lender requirements, some of which involve appraisals.
One agent who asked that he not be quoted said, "I had a good contract for my seller on a condominium which was listed for about 15 days and we received an offer over list price, but there were no other sales in the building for that price point. The deal got killed due to the mortgage clause contingency because the unit didn't appraise out per the lender's requirements." Unfortunately, this is becoming more common in markets where pricing has hit bottom.
3 Actions To Avoid Deal Killing by Lenders:
1) When Possible, Don't Have Client Pay More Than The Last Recently Sold Similar Property.
2) Avoid A Contract Price Setting a New High Market Price By Removing A Seller Credit.
3) If You Must Pay A Higher Price, Be Prepared With Appropriate Market Facts & Benchmarking Competition.
Yes, in many part of the country, we are not out of the proverbial Housing Morass yet, but there are glimmers of hope shining through. Let's keep that housing sunshine shining by preventing deals from getting killed unnecessarily.
Michael Hobbs, PahRoo Appraisal & Consultancy
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