Posted on: 27th Apr, 2009 07:04 am
My husband and I have lease purchased a home in November 2008. The purchase price is $295,000. and we used a realtor and an attorney as is required in Illinois. According to the Illinois contract we have until November 2009 to purchase. We also had a home inspecctor inpect the property. We also have good credit scores. The problem is that the bank just did an appraisal on the Illinois Property and it came in at $248,000. Shouldn't our realtor have known the property wasn't valued at $295,000.? This is almost a $50,000. difference! Now we are in a bind with the seller. We thought we had covered all our bases by going through a realtor and attorney and now what a mess....
How could this have been avoided?
How could this have been avoided?
It may have been worth $295,000, or at least close, back when the contract was signed. I have also found that some lease purchases are slightly higher than current market value because it anticipates increases in value and considers the additional time and work the seller must endure until completion of the sale.
The problem is that property values have been dropping significantly all over the country. While I can't speak much for your area, here in Atlanta, some neighborhoods have dropped as much as 10% per quarter.
I would try to renegotiate the contract for a lower price or extend the contract until the market has had time to correct itself.
Best of luck to you!
The problem is that property values have been dropping significantly all over the country. While I can't speak much for your area, here in Atlanta, some neighborhoods have dropped as much as 10% per quarter.
I would try to renegotiate the contract for a lower price or extend the contract until the market has had time to correct itself.
Best of luck to you!