Posted on: 05th Dec, 2007 05:12 pm
I was told by my realtor that you cannot sell a home in Oklahoma for more than the appraisal value, even if the buyer agrees to the price and has a down payment so they do not have to borrow more than the appraisal amount. Talking a difference of about $3000.00. Just wanting to make sure I am getting the truth here and that my realtor is not just looking for a quick sale.
Hi MIMI,
Welcome to this forum.
When you go for a mortgage, the bank will appoint their own appraiser and he will give the bank an appraisal value of the property. Based on that appraisal, the bank will give you the mortgage. Now if the borrower wants to pay more than the appraisal, he will have to pay it from his pocket. But I don't think any borrower will do that.
Thanks,
Larry
Welcome to this forum.
When you go for a mortgage, the bank will appoint their own appraiser and he will give the bank an appraisal value of the property. Based on that appraisal, the bank will give you the mortgage. Now if the borrower wants to pay more than the appraisal, he will have to pay it from his pocket. But I don't think any borrower will do that.
Thanks,
Larry
Also, on a cash transaction they can buy it for whatever amount they want, as there is no lender requiring it to be appraise for a specific amount. This is how Ted Turner is buying all of that land in Nebraska for prices higher than there has been in the past, paying cash... and it's worth it for him.
Hello Mimi,
Is the appraisal value less than your cost basis?
Because if the price exceeds your cost basis, you will have to pay capital gains tax. Otherwise, if the buyer agrees to pay the price, you may sell it more than the appraisal value.
Is the appraisal value less than your cost basis?
Because if the price exceeds your cost basis, you will have to pay capital gains tax. Otherwise, if the buyer agrees to pay the price, you may sell it more than the appraisal value.
unfortunately, on this stream, nobody has addressed your question, MIMI. you are asking about a specific law that your realtor is apparently discussing.
i'm afraid i don't know the answer to your question, either. do you have a lawyer handling your affairs? that's where you should go for this answer, frankly.
i'm afraid i don't know the answer to your question, either. do you have a lawyer handling your affairs? that's where you should go for this answer, frankly.
There is no law I've ever heard of limiting what a private individual can sell another private party a peice of land for. If you want to sell a one bedroom condo in the woods for 500 million and another oil tycoon comes along and just things its the perfect get away and wants to pay cash for it, I can't imagine any law preventing that.
now if you involved a federally regulated loan, then there are laws and rules.
now if you involved a federally regulated loan, then there are laws and rules.
You were lied to. You can sell a $25,000 home for 9 million dollars if you want to as long as you have someone stupid enough to pay it! The buyer can't finance more than appraisal value but if they have the money you can charge whatever you want.
wow...condos in the woods...do they even have woods in arizona? i've been there and never noticed any. lots of cactus and red rock, though.
and there probably is someone stupid enough to pay $9 million for a $25000 property - it might take a while to find that person, though. it would have to be a cash deal to avoid issues with a lender.
and there probably is someone stupid enough to pay $9 million for a $25000 property - it might take a while to find that person, though. it would have to be a cash deal to avoid issues with a lender.
this was me, being a little snarky in accordance with the other posts:
wow...condos in the woods...do they even have woods in arizona? i've been there and never noticed any. lots of cactus and red rock, though.
and there probably is someone stupid enough to pay $9 million for a $25000 property - it might take a while to find that person, though. it would have to be a cash deal to avoid issues with a lender.
wow...condos in the woods...do they even have woods in arizona? i've been there and never noticed any. lots of cactus and red rock, though.
and there probably is someone stupid enough to pay $9 million for a $25000 property - it might take a while to find that person, though. it would have to be a cash deal to avoid issues with a lender.
$3000 is well below the gift tax exclusion, but in the general case, wouldn't selling for more than the appraised value generally involve gift tax considerations? Don't know, just asking.
If that was the case, every used car dealership would be in trouble.
