Honesty
Yesterday, we terminated the contract on the A-frame. I was a little sad, but had expected to do it for so long that I surprised myself with my emotional resilience. We knew that in order to make an offer on another house and close on it before our lease extension runs out we'd have to make an offer on a home within the next day or two.
Steven: So, just be honest with me. How likely is it, in your opinion, that we'll get the A-frame if we just wait it out and see what happens with this appraisal rebuttal?
Real Estate Agent: Well, I like to stay hopeful, because I know you guys really wanted the property and it seems likely that some lender out there would be willing to pick up the loan. But, to be perfectly honest, I think it's got a 5 or 10% chance of going through at this point.
5%? Everyone had been telling us to keep hoping -- to keep waiting because there was a chance it would all work out. But that chance is 5%? That means that if we kept pursuing the A-frame, there'd be a 95% chance we'd simply stay in our apartment for another year.
Steven asked the same question of our mortgage broker.
Mr. Nice Guy: Well, I know you both like the property, but it's a tough sell. I think getting the A-frame at this point is a long shot.
Steven: So, you've told us over and over again that we're not the problem, the home is the problem. If we tried to purchase a perfectly normal home that required no "fixer-upper" type work, what are the chances we'd get a loan on it?
Mr. Nice Guy: Well, once applicants are as documented as you are and still approved (which you are), then we have a 95% success rate in getting the loan to go through.
Folks were finally completely honest with us instead of trying to sell us on wishful thinking. A 95% chance of staying in our apartment vs. a 95% chance of being able to buy a different, "nicer" home. The choice didn't seem hard at that point.
So, we made an offer on the super nice suburban home yesterday. We asked them to give us a reply by today. They had received a different offer the day before, but it was for lower than their asking price. So, we offered their full asking price plus a few thousand extra dollars if they would contribute the extra thousands towards our closing costs. I believe the house will appraise well and solidly, perhaps for as much as $15K more than the asking price (but then again, you never know). So, if the offer gets accepted, we shouldn't have any problems getting the loan to go through.
Steven: So, just be honest with me. How likely is it, in your opinion, that we'll get the A-frame if we just wait it out and see what happens with this appraisal rebuttal?
Real Estate Agent: Well, I like to stay hopeful, because I know you guys really wanted the property and it seems likely that some lender out there would be willing to pick up the loan. But, to be perfectly honest, I think it's got a 5 or 10% chance of going through at this point.
5%? Everyone had been telling us to keep hoping -- to keep waiting because there was a chance it would all work out. But that chance is 5%? That means that if we kept pursuing the A-frame, there'd be a 95% chance we'd simply stay in our apartment for another year.
Steven asked the same question of our mortgage broker.
Mr. Nice Guy: Well, I know you both like the property, but it's a tough sell. I think getting the A-frame at this point is a long shot.
Steven: So, you've told us over and over again that we're not the problem, the home is the problem. If we tried to purchase a perfectly normal home that required no "fixer-upper" type work, what are the chances we'd get a loan on it?
Mr. Nice Guy: Well, once applicants are as documented as you are and still approved (which you are), then we have a 95% success rate in getting the loan to go through.
Folks were finally completely honest with us instead of trying to sell us on wishful thinking. A 95% chance of staying in our apartment vs. a 95% chance of being able to buy a different, "nicer" home. The choice didn't seem hard at that point.
So, we made an offer on the super nice suburban home yesterday. We asked them to give us a reply by today. They had received a different offer the day before, but it was for lower than their asking price. So, we offered their full asking price plus a few thousand extra dollars if they would contribute the extra thousands towards our closing costs. I believe the house will appraise well and solidly, perhaps for as much as $15K more than the asking price (but then again, you never know). So, if the offer gets accepted, we shouldn't have any problems getting the loan to go through.