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Q: Why is that?
A: Because the assumable mortgage is in place.
Q: Does it have value?
A: The assumable mortgage?
Q: Yes.
A: Yeah. The value of the assumable mortgage
with regard to the house, which is the asset,--
* * * * * * *
A: --has value.
Further, Dr. Kaufman was asked and answered as follows:
Q: * * * Back to my other hypothetical about
the two homes next door to each other, let’s assume you
can’t decide which house to buy, the $300,000 one with
no assumable mortgage or the $300,000 house with the 1
percent mortgage. Market rates are five.
* * * * * * *
Q: Do you think it’s possible to calculate how
much more you would pay for that house with the
assumable 1 percent mortgage? Is that possible to do?
A: I think it’s probably possible.
Q: But a buyer certainly would have the tools to
determine how much more to pay for the below-market
financing. Is that right?
A: Not for the below-market financing; for the
house with the below-market.
* * * * * * *
A: Again, you keep wanting to separate. I can’t
separate that because you’re not going to buy a
liability.
Q: Let’s say the buyer hired an appraisal
company and had in the buyer’s hand an appraisal saying
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