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The real estate agents for this property insist that you apply with their mortgage broker. They say the application will 'probably' be waived when going through him, but the practice seems unseemly.
Yeah, it's not ideal but not the worst thing. Apparently they have a mortgage bank/broker who has approved the building (a small coop no less) and is ready to go. As a seller in this market there are worse demands! (cash/noncontingent, 60 day close, etc).
I'd probably be more concerned that the seller is looking for a 200% return in 6 years for that address, but that's just me. My logic in this market place fails to establish value in the eyes of others. All I can say is, bid away, folks!
sp21: I'm not sure what you mean. Do you mind explaining a bit further, I find it pretty onerous to go with their bank/broker for a number of reasons:
1. Their broker (probably) doesn't have the buyer's interest at heart (incentives are out of whack).
2. The rate may not be the lowest
3. The type of loan may not be the best
4. Conflict of interest.
A) If the sale is contingent on using their bank then that's terrible and a non-starter.
B) If the sale is contingent only on the broker then I can see the following happening: The contract states an unreasonable date for closing. The only way to meet that date is to go with their broker, thus forcing you to go with their bank (effectively A above)
Nah: Totally agree about the 200% return in 6 years being beyond ridiculous. Whether prices are fairly valued is a great discussion (and my family has it constantly, we're bearish on the crazy price trend continuing) but I don't think this expected return is much different than what's happening all over BoCoCa no?
*and I meant "waive application fee" not waive application
this is a tiny coop that 99% of the banks will not touch. what could it hurt if you find out what the fees and rates are?
if you like, have them put it on paper of what % over prime you'll pay the bank and what the closing fees are and proceed.
Can we talk about the fact that this building
has the exact same lay-out as 167 Carroll, was built by the same builder in the same year, and is selling for $116,000 less? It is literally the same apartment, but 2 blocks west, and with different paint, fixtures, aesthetic. Sellers/Agents want to put a premium on this place, but for that kind of $?