Greetings,
I am in the Cleveland market where a great deal of our transactions are closing with fha loans. Up until recently, a buyer could ask for as much as 6% towards closing and downpayment and in some cases even more. Most of the downpayment assistance has gone away, but the last few years leave us with comps that are "skewed" I had one such offer on a home where the offer was for $270.000 making the seller concession ~$16,000. My question is this: What is the real value of that home? The agents in my office appear divided. Some say the value of the $270,000 home ( and the one that should be used in future market analyses) is $254,000, and from a seller's standpoint I'm sure they would agree. The buyer's agent argues that the value of the house is ~$262,000 since 8K is being given for down payment. And the buyer will tell everyone that they paid $270,000! I would love to hear from some appraisers on this topic.
Thanks,
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