It depends, if you are buying a home an dgetting a mortggae, then the appraisal comes in lower, then you can pay the shortfall cash at closing. You should check with your buyer broker for answers... more
Yes, if you want to move forward on your purchase and the seller isn't prepapred to reduce the price to meet the appraised value (which is what you and your buyer broker should be pushing for) then you'll have to make up this $4000 difference. You won't actually be paying the Seller, you'll be paying the closing attorney or escrow agent. All funds go to them aand they will dispurse funds out to the Seller, his lender if there's a mortgage, etc.... more
Yes, but only if you are willing to sacrifice an extra hour to commute to work, or, if you work from home, the feel of belonging to a community - I personally love areas like Delmar and Saratoga Springs, which have a very high "Walk Score", as does the nicer portions of downtown Albany - but that's going to cost you an extra $250 - $600 per month. Also, because the catch-all of security once known as "investing in real estate" - AKA owning your own home - is now and forever will be a false sense of security, as the cost of owning a home - including the phantom or shadow costs like roof replacement and repair, regular maintenance and reasonable updates to keep your home relatively energy-efficient, modern, and in good condition (windows, water heaters, low-flow showerheads and toilets and new pipes and weatherproofing or replacement decking, mold inspection and mold-retardant everything, keeping your HVAC system clean and running smoothly) all adds up to an expensive proposition that carries NO GUARANTEE of your ever recouping your expenses when you sell the house - in fact; all over the Capitol Area, even in the nicer suburbs like Ballston Spa, housing prices have been on the decline ever since the bottom fell out of the housing market in the early 2000s and will never, ever be the a "good investment" in the way we have traditionally been taught to understand: I believe Trulia estimates between 5% - 12% just over the past couple of years, and this is technically AFTER the recession. Owning your own home is not a safety net - it's a liability. The popularity of rent-to -own programs ONLY SERVES TO HIGHLIGHT how far homeowners are haaving to go to just break even when seling their houses. There's no middle class with good credit and and a sizeable chunk of money to put down from their savings, and banks aren't lending it to anyone but the wealthy. So homeowneers are turning to exploitative programs (for both renters and owners) in the hopes that they won;t have to sell their home at a loss of 12% - and that's not adjusting for inflation or "shadow/phantom" costs. There's NO SECURITY in owning a home, and unless you are flipping real estate in a knowledgeable way using money that isn't yours (this happens a lot more than you would believe), real estate is a crappy investment. The idea of of the American Dream, a phrase coined by none other than Fannie May in the mid-1900s - when we DID have a middle class, and the average family could afford to live in a home that was a good investment - is now and forever an antiquated notion...
An expensive apartment for which you are not ultimately responsible when the price drops by another 12% in five years is a better investment than buying a home or renting-to-own: the one reason to buy a house is because you love it so much and don't care wht it costs to live there or maintain it. Houses are the new boats. No one ever made money from investing in a boat, but they might have had the time of their lives going fishing every weekend, in which case the money was well-spent.... more
An agent can help you determine a price for your house that takes into account the fact that there's work to be done. There is a market for fixer-uppers but the house will have to be priced accordingly. There are plenty of things you can do for free or low cost - the more you can do to spruce your place up the better. Clean, declutter, etc. A good agent will be able to give you guidance in that regard as well.... more
To qualify for a FNMA (Fannie Mae) or FHLMC (Freddie Mac) loan, most banks will require the buyer to put down at least 20 percent of the purchase price. At $270,000, a 20 percent down payment would be $54,000. Since you are only putting down a $15,000 down payment, the home is obviously being purchased through an FHA backed loan, rather than a "conventional" loan with 20 percent down.
While you certainly could have put down much less for your down payment (FHA requires only 3.5% down or $9450 on a $270K purchase), since lenders tend not to like FHA loans for the purchase of REO and short sale properties, I can only assume that to make your offer more attractive to the lender, a larger downpayment was suggested. Putting down more money toward the purchase of the home is one way to "strengthen" the offer on a desirable property. Since this home is less than 2 years old and in fairly good condition, it might be that there were multiple bids on this property and to get the home, you'd need more down payment. To get the full story about why the larger downpayment was needed, you need to talk with your agent.
However, as Lynn pointed out below, if you are uncomfortable with the down payment and have trepidation purchasing the home, then you can always rescind your offer before it is signed or accepted. You might also check with your agent to determine if your offer was accepted or was "bested" by another buyer.
Grace Morioka, SRES, e-Pro
Area Pro Realty... more