OK, so I started a thread about land contract the other day. This is in continuation about that. First off, I'm an idiot for not doing my homework on this land.

It is a 3.1 acre lot in our town, listed at $39,000. It does not have sewer or water already run to it, or electricity. All would have to be done at our expense. Without doing homework, we offered $32,000 (contingent upon financing) and they countered $34,000... we accepted (stupidly).

Well, part of the financial contingency includes talking to a banker, so that's what I did. This banker is a guy that I know, has nothing against any of the parties in this deal, and was just shooting me straight. He said that land like that in our town is lucky to be $5,000 per acre. Farm land (5 acre lots) are being sold at about $30,000 in the country. He called a lady (appraiser) and asked her to ball park it, and she said that it wouldn't be worth more than $15,000 (off the record).

Here is our rock and hard place. The people who are listing this house with this agent just so happen to be friend of ours. (We did not realize this going in). The banker suggested that we have it appraised (roughly $300). The way I see it, that is a part of the "financial contingency." The bank (our financiers) say to get it appraised, so we'll need to do that. The bank will loan 80% of the appraised value or purchase price, whichever is lower.

- Am I breaking any (unwritten) rules here, by entering into an agreement, then wanting the appraisal?

- Who should pay for this appraisal? Reason I ask that is b/c I would hate to pay for the appraisal (gift to the sellers) have it come back at $15,000, offer $15,000, have them say "NO!", and then walk away. We just gifted them a $300 appraisal, and that doesn't sit well with me.

Advice?

(Before you rag on me, note above where I already admitted I'm an idiot.)

I don't think the 300 would be alot if that opened their eyes to it only worth about 15,000. I don't think they can expect to then sell it for too far over that after that. You may be doing them a favor but in turn it may work out to be your favor if they decide to part with what it appraises at. Just my 2 cents no expert on this by any means.

Fab1b;448409 wrote:I don't think the 300 would be alot if that opened their eyes to it only worth about 15,000. I don't think they can expect to then sell it for too far over that after that. You may be doing them a favor but in turn it may work out to be your favor if they decide to part with what it appraises at. Just my 2 cents no expert on this by any means.

Much obliged, kind sir.

Talk to them strait up about it and explain the information you now have. Maybe they will want to work something out or just end the agreement.

If they don't agree on paying for an appraisal...maybe work out a deal and you each go half on it? Then it wouldn't sting quite as bad if you were to walk away.

Sounds like the three hundred dollar cost for the appraisal... (while it is a lot of money) is a drop in the bucket compared to paying 34 grand plus closing costs for the lot. Chalk it up to experience and keep looking.

Yes, I think that we'll probably chalk it up as experience, but we still want to try for this land. I'm just not sure the sellers will settle on that lower amount. Apparently they think it is worth a lot more.

I suggest killing yourself.

SnotBubbles;448549 wrote:I suggest killing yourself.

I've thought about that. I've also thought about who I would contact, as reference, if I thought about killing myself. You know, words of advice.

Didn't a poster get doped up on meds and alcohol and threaten to kill themselves... online? Would this be a good way to go about doing it?

ernest_t_bass;448553 wrote:I've thought about that. I've also thought about who I would contact, as reference, if I thought about killing myself. You know, words of advice.

Snot, didn't you get doped up on meds and alcohol and threaten to kill yourself... online? Would this be a good way to go about doing it?

I'd say no...because if you fail, you'll never hear the end of it. Never. Ever. Never ever. Never ever ever. Until you wish you hadn't failed.

ernest_t_bass;448553 wrote:Didn't a poster get doped up on meds and alcohol and threaten to kill themselves... online? Would this be a good way to go about doing it?

Themselves? Was there more than one of them? For being a teacher, you sure are stupid.

Oh, and for the record....yes, I think that would be a very classy way of doing it. Good luck...let me know if you need a hand.

SnotBubbles;448564 wrote:Themselves? Was there more than one of them? For being a teacher, you sure are stupid.

Stellar comeback. "Themself" comes up as a misspelled word.

I think a $300 loss is better than paying 19k over the actual price.

Nate;448580 wrote:I think a $300 loss is better than paying 19k over the actual price.

Well, we're not going to pay that much over price b/c the bank will only give us 80% of the appraisal or purchase price, whichever is lower. An appraisal will have to come, regardless. The $32,000 offer we put on it will not be done. No chance in hell.

Along with some good advice, there have been some pretty funny slams and responses, too! I'm LOL-ing. ETB, have you found out what the costs will be to run the utilities into there?

E_T_B I can draft up a contract that only you and I can understand to present to the seller or I have a extra horse head ....

I'm assuming you are currently "in contract" as they counter offered and you accepted. If you accepted in writing and didn't cover things like who pays for the appraisal, then that's on you. If you want out of the contract, it should be simple. Get it appraised and say you can't get financing for $34,000 if it does indeed come in well below that.

Doesn't sound like you thought this one through, and I hope you are certainly seeking advice outside of a sports message board.

thedynasty1998;448626 wrote: Doesn't sound like you thought this one through, and I hope you are certainly seeking advice outside of a sports message board.

LOL... Yes, I sought other advice No, I didn't think it through

ernest_t_bass;448649 wrote:LOL... Yes, I sought other advice No, I didn't think it through

It really shouldn't be that hard to get out of, but you would definitely want to do it the correct way, and a low appraisal would definitely be one way.

Pay for the appraisal, and offer them the appraisal price if you really like it. Fact of the matter is, if they want to get rid of it, they will accept your new offer. They'll never be able to sell it for $30,000+, unless some idiot comes along with a pocket full of cash, which is about a 1% chance. I don't see what payin' for the appraisal hurts if you really want the land.

se-alum;448751 wrote:unless some idiot comes along with a pocket full of cash, which is about a 1% chance.

Well...they got one out of two. The idiot came along, but it doesn't sound like he has a pocket full of cash.

^I lol'd

ernest_t_bass;448405 wrote:What Should I Do?

Her best friend.

The damn thing.

GoChiefs;448857 wrote:Well...they got one out of two. The idiot came along, but it doesn't sound like he has a pocket full of cash.

This

I think you should move out of that shitty town. I can't believe land goes for 5k+ an acre in that area.