And another house falls out of contract

Well, accepted offer anyway. 55 Oval Avenue reported an A/O February 2 but was returned today. I always thought this house looked quite attractive and at an asking price of $745,000, it’s an affordable spot in Riverside. But something happened. I haven’t tallied these things up recently but it seems to me that we’re seeing more and more accepted offers fail to bloom into actual sales. If so, I’d guess it’s due to the buyers’ inability to get financing or, as discussed below regarding Carpenters Brook, a short sale lender refusing the bid.

13 Comments

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13 responses to “And another house falls out of contract

  1. anon

    you say maybe “due to the buyers’ inability to get financing”. don’t buyers get pre-approved by their lenders to avoid this sticky wicket? seems real estate 101 to me. get the money first.

    • They do, usually, but the house must still get an appraisal that falls within the bank’s lending guidelines. Failed appraisals are just one of many ways an “approved” loan can fall through these days, but it certainly does happen, especially now that banks are using out-of-town appraisers and paying them fifty cents to do the job.

  2. anon

    I don’t get the last part: “especially now that banks are using out-of-town appraisers and paying them fifty cents to do the job.”

  3. Anonymous

    What a horrible photograph. Surely they could have found a more flattering angle.

  4. Anonymous

    Doesn’t the appraisal only come into play when a buyer is putting a small down payment (ie 10-20%) on the house and the bank determines that the house is worth close to or less than the loan amount? If the buyer offers $1,000,0000 and plans to put 50% down, does it matter that the appraisal comes back at $900,000? The house is still worth more than the mortgage.

  5. Anonymous

    appraisal rules are extraordinarily strict nowadays.

    what that means in real world terms is they’re actually doing a more honest job. real estate brokers or mortgage brokers who used to buy appraisers two week all expense paid vaca’s in cancun can no longer do that, or at least not without risk of losing their (appraiser) license.

    getting good comps is very, very difficult. sellers either get price religion, or buyers get bad gas. nobody wins.

  6. Anonymous

    anon @ 1:55: once it goes into the 60 area or lower on ltv, banks usually have wider discretion, yes, esp. if it’s held in portfolio. at the 80% level, they’ve got zero wiggle room if prop comes in a penny less. especially if it’s getting sold as a jumbo under strict guides.

  7. So Greenwich

    what’s the story with the one across the street that is also for sale – 54 terrace?

  8. ?

    I thought everyone had to pretty much 20% down these days? I’m kind of intrigued to hear that this is not the case in Greenwich.

  9. AJ

    I never liked Oval Avenue; I’m not quite sure why: I can think of much worse places to live, but it just doesn’t seem to have that Riverside vibe. Short walk to the train station though.

  10. No wonder it hasn’t sold: 2BR and 1B.

  11. Raised in Riverside

    That house is practically in the train station parking lot. Oval, Terrace, Summit – they’re all great, so convenient to the train station, but this house is just TOO close. Not to mention the 2 bed 1 bath problem. It’s too small for a family, so it would be hard to find a buyer — besides a couple w/out kids or an investor ooking for a rental property, not sure who would be interested.