Monday, May 17, 2010
Monday Bunday: Comparable
As you can see, these two share many similarities but aren't really comparable.
Just so, it looks like my home purchase may come to nothing for a silly reason. University Oaks is a very small neighborhood and has few houses the size we're trying to buy. We've consulted two lenders and two appraisers now, and neither can secure underwriting for the loan amount I need because there have been no sales of truly comparable homes.
Oh, there have been sales similar in square footage within an appropriate radius, but they're in the slummy neighborhood nearby, where one is likely to get shot while watering the garden. Here, where there has never been a crime more serious than someone getting their lawnmower stolen because they forgot to close the garage door? No home sales. People move here and stay for decades. They pass their houses on to their children.
Since we can't get an appropriate appraisal, we can't underwriting. Sad, because they were happy to lend me the amount I needed at 5% interest until the appraisal came back so low. The seller has offered to finance, but he wants me to pay off the note in five years and I've been unable so far to get him to include a proviso in our contract that will protect me if I still can't get an appropriate appraisal due to lack of comparable sales.
So things are at an impasse right now. It's frustrating to think we may have to move again over such a dumb reason as underwriting regulations, but life is full of dumb rules. One simply tries to maintain serenity in the face of all the insanity.
Have a safe and sane week, everyone!