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Does Zillow or other estimates matter?


BigOxley

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Only if they pay in cash. At the end of the day you can only get a mortgage for what it appraises for.

 

If only that were true. Technically, you can only get a mortgage to a certain loan to value ratio.

 

As JP mentioned, I have helped people buy their dream home at prices well over asking price and appraised value...the clients just have to bring more money to closing to meet minimum LTV requirements for the loan program they have selected. I never suggest this, but at the end of the day it is your money to spend how you want.

-Marc

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Yea, the buyer would have to bring more cash to the table but in many cases that's not possible because many people shop towards the top of their price range. When we sold our house the appraisal came in $2500 below our contract because they used a bogus comp and couldn't use 3 other homes in the neighborhood that were in contact but not closed that supported our price. We had to meet them halfway to get the deal done.
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