Tuesday, April 29, 2008

Roller coaster continues

July 1, 2007

This morning

"This is the perfect example of the three most important things in real estate," the FHA appraiser told me Monday.

"Location, Location, Location."

The appraiser agreed that there are no suitable comparable homes -- similar age and square footage sold in the last three months -- in the neighborhood. She reviewed a year's worth of sales. It's also not comparable to homes the next neighborhood over because they aren't walking distance to the Old Market.

So she's using NEW CONSTRUCTION as part of her appraisal! Yes!

In fact, some of the new construction is actually smaller than the flip (about 1,400 square feet). A two-bedroom, one bath at the Towns sells for $241K.

She also had a pile of recent sales and listings of older homes.

I'd been in most of them and could tell her their condition ("Um, this one had a pair a furry handcuffs hanging on a closet door knob." True story.)

This is where knowing your neighborhood and staying on top of the real-estate market pays off. She at least knew I didn't pick the price at random or based on profit.

Thing is, she still doesn't have a price yet.

This bodes well for backing up my measly $120K purchase price, but we don't have it confirmed, now four days from supposed closing.

New construction down the hill:

This morning
The appraiser also was tickled to hear I had painted and gotten the windows underway. She swung by to take a look and get updated pictures to her report.
If I can get the windows finished (most of which are at the reglazer's), it looks like we might avoid a repair escrow altogether.
The final word rests on the loan underwriter, but things are swinging the right way.
We supposedly should know by the end of today. But I've heard that twice already.

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