Selling property for more than purchase price - problem getting a loan
I purchased my property in November 2010 for 280 and since then have put in a significant amount of work into the place. I was planning on putting it on the market for considerably higher than i purchase it for (400-450). Based on recent sales i don't think the property should have a problem appraising at that value, BUT i have heard that banks require seasoning of 12 months and wont allow such an increase in price after 6 months. Can anyone speak to this? by annett_765_718 from Millington, Michigan. Sep 7th 2011
Chris Lockard (christopherlockard)
#17 ranked lender in Kansas - 9 contributions
First off, great question. There are anti-flipping laws but it more often only applies to FHA or Government insured loans. You also may want to check with any state or county overlays for value change but you in this case, if the appraisal comes in at that price then you should be fine. In the event the appraisal comes in less then the buyer will need to bring the difference or your will have to lower your purchase price. I hope this helps! Good Luck
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