Is it true that it’s difficult (even at the bottom of the market) to get a great bargain, relative to the comps, because lenders will suspect that the buyer is borrowing “on the side/under the table” from the seller ?
In case my question is not clear, here is a hypothetical situation:
Let’s say that the comps for a house is $1M. Even if the seller agrees to sell for $850k (b/c the market is very slow & he needs money quickly), the lender may suspect that the actual sale is for $950k & the seller is lending the buyer $100k on the side.
Is this true ? How likely can one get a great bargain in an “extreme buyer market” ?
