All Forum Posts by: Lydia S.

@Eric Carter

A hard money loan is a loan, so it’s considered financing, not cash.

@Brian Bertschi

In New Mexico, this is decided by the seller on the listing agreement.  The seller and Realtor discuss the pros and cons of things such as this, as well as whether the seller wants a see any further offers after going under contract.

These points can be amended if the seller changes their mind.

@Account Closed

What’s not being taken into account is all the profits and tax benefits of having this rental working since 1982.  Plus a 1031 would offset the capital gains concern.

How did you come up with a current sales price of $220K?  There’s still significant competition for housing in most of the US which has driven pricing up.  It wouldn’t surprise me to hear your estimate is low.

If you want higher cash flow and have all that equity, why not do an exchange into a multi family?

@Matt Littlepage

Wow, that’s pretty shocking that they’re taking so long.  Is there anything delaying writing an offer such as waiting for your Lender letter or proof of funds?  
Are your offer prices reasonable?  

Did you call them to discuss offer details like the amount of earnest money, who’s paying which closing costs, appraisal, inspection timelines, closing date and so forth, or just email them?

Maybe you tried using someone who’s too busy rather than someone who’s hungry for a transaction.

@Zachary D.

Your Realtor is correct, you cannot ask for a price reduction in lieu of repairs listed on the appraisal.  They must be completed in order for you to get the loan and close. 

@Zachary D.

If the appraisal had come in low, that’s when you would renegotiate on price.  You cannot just decide you want a price reduction for no reason.

The repairs called out by the appraiser will need to be completed and another visit from the appraiser will happen to confirm their completion.

Typically the seller performs those repairs.  It’s not your home yet so performing them yourself is a risk and potential liability, however if the seller refuses, it sometimes happens otherwise the deal is dead.

Has your Realtor sent over those repair conditions to the listing agent yet and has the seller agreed to perform?

@Joseph Pack Jr

It’s not your post that is self-promotion, but the responses might be☺️

@Zack Phoenix

1- depends on your MLS rules. We cannot advertise the pending property when representing the buyers unless we have permission from the listing agent. After closing there's no issue. And yes, plenty of Realtors don't read their MLS rules.

2- Ethics.  That may be construed as an ethics violation.  Read them.  And take your required Ethics class as soon as possible😉

@Tralecia K Young

If there were things that the appraiser said needed to be fixed, the appraiser will be making another visit to the property to assess those items before closing anyways. This means they will see the roof.

The appraiser will then make that a condition of repair to be fixed before closing as well, so either the seller will have to fix it or you won’t get the loan.

@Steph Paul

When you say ‘the Realtor in this deal’, I am forced to assume you are working with the listing agent?

My recommendation is to get your own representation, essentially since you state you’re a newbie.