Comments on: Highest Bidder Not Always the Winner http://annamayrealestate.com/2009/10/14/highest-bidder-not-always-the-winner/ Realty World - Neighbors Thu, 22 Jul 2010 23:27:27 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Anna May http://annamayrealestate.com/2009/10/14/highest-bidder-not-always-the-winner/comment-page-1/#comment-77 Anna May Tue, 20 Oct 2009 23:13:00 +0000 /?p=40#comment-77 Actually, paying higher than the appraised value is not necessarily what got us into this mess. When financing is involved, a buyer who pays more than the appraised value must bring additional money into escrow to make up the difference in the loan amount. The reason for this is that a lender generally would not loan any more than 100% of the appraised value. What got us into this mess is a result of a number of factors, including lenders who offered loans to borrowers who could not (in reality) afford the payments, buyers knowing they would not be able to afford the payments later on but thought they could refinance, and (yikes!) even real estate agents who didn't warn their clients against overly-ambitious financing scenarios. Actually, paying higher than the appraised value is not necessarily what got us into this mess. When financing is involved, a buyer who pays more than the appraised value must bring additional money into escrow to make up the difference in the loan amount. The reason for this is that a lender generally would not loan any more than 100% of the appraised value.

What got us into this mess is a result of a number of factors, including lenders who offered loans to borrowers who could not (in reality) afford the payments, buyers knowing they would not be able to afford the payments later on but thought they could refinance, and (yikes!) even real estate agents who didn’t warn their clients against overly-ambitious financing scenarios.

]]> By: lisa http://annamayrealestate.com/2009/10/14/highest-bidder-not-always-the-winner/comment-page-1/#comment-73 lisa Fri, 16 Oct 2009 02:48:20 +0000 /?p=40#comment-73 I would not pay more than the appraised value for a house either. Even in a hot market! that's what got is IN the mess everybody is now getting out off. I would not pay more than the appraised value for a house either. Even in a hot market! that’s what got is IN the mess everybody is now getting out off.

]]> By: Nanny74 http://annamayrealestate.com/2009/10/14/highest-bidder-not-always-the-winner/comment-page-1/#comment-71 Nanny74 Thu, 15 Oct 2009 00:09:11 +0000 /?p=40#comment-71 There's no way in heck I would pay more for a home than the appraised value. I'd rather find someplace else to live. There’s no way in heck I would pay more for a home than the appraised value. I’d rather find someplace else to live.

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