Are you seeing closing delays ?

Question

I have a closing scheduled in the next 2 weeks but I am worried that I might be overpaying for this property. Agreement signed when there was no pandemic and even then the cost was significantly above the market price. After inspection we found need some work that will be challenging to get it now  and the seller was not ready to negotiate then. With the changes in the market is it unfair to ask for a assist before closing? Are you seeing delays in closing as everyone is trying to understand the market ?

Marita Jojo · Answer

@Garrett Amundson Thanks

Garrett Amundson · Answer

@Marita Jojo It sounds like you are getting the home at market value if the appraisal came in right on the number. If you are putting a 20% down payment you have comfort in knowing you still have equity in your home from the start. Also if your in this home for the long run as a buy and hold rental then the market correction wouldn't have a huge impact because even if we see a small correction in the market you holding long term are going to regain the appreciation down the road plus possibly any sweat equity you put into the home as far as possible remodel or anything you do to improve the property.

Marita Jojo · Answer

@Garrett Amundson Hi there thanks for replying. Yes 30 day closing and all contingencies have been removed. The financing is at 3.25 % with zero points for 30 years. The appraisal done few weeks back  and came at the price we are paying i.e. 395k. I am worried what if the housing market crashes soon. Will need to check CVA form.

Garrett Amundson · Answer

Hi @Marita Jojo! I am not sure how long your escrow is, if it is a 30 day close or what the number is but have you already removed all of your contingencies on the property especially the inspection contingency? I have a deal closing next week and after talking with escrow yesterday there is a potential for a delayed closing if in fact county offices close and we are unable to record on the contract date. The DRE has come out with a new form as of today that is called the Coronavirus Addendum/Amendment (Form CVA). You may want to look into that if you have already removed all contingencies as if you fit the criteria for it you may be able to still get out of the deal or at least extend escrow and possibly get some more negotiating in. Another thought is I am not sure what the financing is like that you are getting but depending on what it is you could have a Appraisal Contingency that could be used to renegotiate price or get out of the deal especially if it is over priced and there are no comps to support the price. Please let me know if I can help in any other way.