if your closing costs are 3500, then what difference does it make what the credit is used for? it simply will be used to absorb some of the costs. it's unclear from your question exactly what is impossible -- does the lender say that the credit can't be used for escrow, or does he say that there is no credit available for you?
YOU have to place it on the market to know. This market is testing the waters. 5 years ago you were offered 400k? that is most certainly different now, we are at a low market in 2005 we were still at the PEAK. You need help of a local realtor in your area and see what has sold now in 2010!!... more
Probably somewhere in the mid 500's if it's one of the larger ones on Madison. Low 400's if it's in Canterbury Village. If you want more detail, contact me directly and I'll stop by. I really need to see it in person to give you a reliable value. Good luck!