November 20th, 2010 2:59 PM by Eric Fang
I heard two stories last week about purchases.
The first one is from one buyer. She told me last week that she made an all cash offer for a property of 690k, but was surprised to find out that the property was sold for 685k with a loan. The story behind this is that another buyer offered for 740k, and the bank accepted the offer; while working on the loan, the appraisal value is only 685k, the buyer agent negotiated with the bank to get the property for 685k. Is not great for the other buyer? I think that agent is great.
The 2nd story is from another buyer. He told me that he will take a look at one property this weekend. For some reason, that property failed escrow twiceand just back to market again.
I don't know why the transaction failed. But It did remind me about another transaction I just completed(I mentioned in previous blog before). If the borrower purchased the property as primary, the DTI will be too high.So he could not qualify. So I suggested him to purchase it as a rental(5000 sqft house). And he got the house with such a good deal. The smooth tarnsaction is very importantfor him.
I know there will be more buyers next spring. I hope you guys all can get good deals with a smooth transaction.