Posted on 11/13/2006 4:20:02 AM PST by xtinct
That's right. But that is exactly what the "original sales contract" is meant to be. Appraised value is also a factor in the sales contract. The appraiser could kill the deal with a lower than originally specified property value.That alone would allow the buyer to walk away with his deposit, legally and easily. No attorney necessary unless some anal seller or agent is involved.
Best of luck to you! If I may offer a word of advice: if you get a lowball offer, don't reject it too fast. Give yourself time to think about it.
It may be that once you get over the shock and work the numbers, you'll be disappointed, but realize it's the only way to go forward with getting your new home.
Buyers are very hard to come by these days.
I suspect the ongoing issue in Mississippi is one of the driving forces behind the dramatic escalation of insurance premiums in Florida -- i.e., when you have political pressure on a government to force insurance companies to pay claims that they may not have been obligated to pay).
I'd add to your observations this: seeing what's happened to insurance rates and taxes in Florida, even when a family feels confident they could handle the present total cost of owning a home there, they think, "Wow, but next year insurance rates could double again" or something like that.
IOW, there's good reason to believe that at some point in the future you could be totally priced out of your home. So instead of your home payments getting easier and easier because of the future value of money, it would get harder.
Also I have friends in Florida who say a big problem is some insurance companies are simply "failing to renew" policies when they come due. So people are sitting in a home and suddenly lose their home insurance altogether. Without home insurance, the mortgage company can foreclose!
I'd add to your observations this: seeing what's happened to insurance rates and taxes in Florida, even when a family feels confident they could handle the present total cost of owning a home there, they think, "Wow, but next year insurance rates could double again" or something like that.
IOW, there's good reason to believe that at some point in the future you could be totally priced out of your home. So instead of your home payments getting easier and easier because of the future value of money, it would get harder.
Also I have friends in Florida who say a big problem is some insurance companies are simply "failing to renew" policies when they come due. So people are sitting in a home and suddenly lose their home insurance altogether. Without home insurance, the mortgage company can foreclose!
We've already worked out the minimum bottom line number we can accept. If someone tries to lowball us and we can't negotiate them back up to that number, we will regretfully decline the contract.
We are in the position of being able to walk away -- our purchase is contingent on our existing home sale, and while it will be a little tight for space in the townhouse once the twins arrive, we can make do with it until next year if necessary.
Of course, all things considered, we'd prefer to make the deal happen now for a whole laundry list full of reasons.
wonderin if the demographics of detroit and dearborn r havin a effect on this area.
I've bought three condos and have never seen mortgage companies willing to loan to owners in a complex that is less than 80% owner-occupied.
Seems to me that's another one of those safeguards that sort of fell by the wayside in the market run-up.
That's what's wierd about this market. It is behaving unlike (mostly) anything we have seen before. Even in this article, someone said the cancellation rate usually did not go up unless the economy was in recession.
Yes, this a great place to live, I'm in Grand Haven, a small town between Holland and Muskegon. We have a little of everything for recreation.
Very good assesment, and quite correct.
That is EXACTLY when the smart people make their money.
In Boston during the downturn in the early 90's a group of young people who worked in the real estate department of John Hancock (I think)bought the two Wang Towers for $500,000. That's right, 500k for two quality office buildings right near I-495.
Their parents mortgaged their homes to come up with the money. Of course none of them has had to work a day since. It was like winning the 200 million dollar jackpot-except it took brains to do it and faith that the market would come back up.
Really smart people have already sold when the rest of the crowd is still in denial. Really smart people are buying when the rest of the crowd has panicked. There's no panic yet.
You are right, very high unemployment. Probably the worst market nationwide.
Spot-on assessment.
Florida politicians and ultimately congress will probably have to step in here....Watch the Dems make Florida look like New Orleans before too long!
Well, I'd be hard pressed to dispute that our economy has experienced a third world shake up. This reminds me of the Brasilian economy with the 100%-300% inflation rates killing their middle class.
People bough homes they could afford, but it was the taxes and insurance that suddenly increased when those were allegedly supposed to be more or less stable factors. This wasn't irresponsible budgeting. It was a hyper-inflation of what was expected to be reasonable incremental costs.
I gree $300K is too much money, but that won'y buy you an average 3/2/2 in FL now a days (at least in Pinellas County).
Good luck with the twins and the townhouse. I assume you are suburban DC, here in No VA the townhouse market bottomed out after dropping about 15% since June 05. There are buyers at the new prices (e.g. 420 instead of 500), but there aren't long lines of them.
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