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Old 01-16-2018, 12:30 AM
 
387 posts, read 1,407,470 times
Reputation: 156

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Quote:
Originally Posted by charlygal View Post
You asked, they countered. The ball is in your court. I had never heard of NACA so I looked it up. It's already a good deal. Why push it? You can mitigate the amount paid in interest by making extra principal-only payments.
Hi Charlygal,

That's exactly what I plan to do!
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Old 01-19-2018, 07:59 AM
 
218 posts, read 121,644 times
Reputation: 584
Quote:
Originally Posted by atlcharm View Post
Hello,

I hope I donít come off as being greedy. However, I want to take full advantage of the program. So I found a home I wanted to make an offer on. I intended to use some seller concessions to buydown my rate. Why not right? We offered full purchase price and asked the seller to pay 3% of the purchase price which would buy my rate down from 3.75% to 3%. The seller countered and said that they are familiar with NACA and know that Naca charges no closing cost so they are only willing to contribute $2k which does even equal 1%. First, that statement sounds like if I were a regular buyer they would be willing to contribute more. Second, is this standard. More and more people are becoming familiar with Naca so does this happen often where the seller declines to pay ďclosing costsĒ because of this. (3) It is a sellerís market in Atlanta, maybe this has something to do with it.

I like the house but I donít want to feel like the seller is working with me less because Iím with NACA. Not sure what to do?

I should add that I was looking at another house before this and they denied to pay any closing costs at all, so we did not even put in an offer. I donít know if it had anything to do with Naca though.

Thoughts?
The seller said no. Accept that and buy anyway or move on. That's the only thing in your control.
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Old 01-20-2018, 04:40 AM
 
Location: Cary, NC
30,087 posts, read 52,792,093 times
Reputation: 28262
Quote:
Originally Posted by LieslMet View Post
The seller said no. Accept that and buy anyway or move on. That's the only thing in your control.
Not exactly....


Quote:
Originally Posted by atlcharm View Post
... Anyway, the seller and I worked out a deal. ...
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Old 01-21-2018, 09:14 PM
 
Location: Tennessee at last!
1,723 posts, read 1,488,339 times
Reputation: 3339
Quote:
Originally Posted by atlcharm View Post
I already knew that and it's also not the responsibility of them to pay closing cost for conventional buyers. The fact is though that the market usually bears it and they do even it's only 2 or 3%. It's all about net anyway, whether the amount is taking off the purchase price or it is given as proceeds in closing costs. Does the seller have to do so no. But if I were a seller I wouldn't care what my buyer was using it for as long as my net proceeds were the same.

It was never an affordability issue. Anyway, the seller and I worked out a deal. The same way that the seller was trying to get the best deal for them I was also trying to get the best deal for myself. it works both ways. I don't consider it a crime.
Your line "as long as the net proceeds were the same" is the key.

I recently sold 3 properties for my mom's estate and one of my homes.

The first house I sold at full price, 30 day close, supposedly to an owner occupier with an approval from a known decent loan company for more than the cost of the house and closing with a 20% down...and a 30 day closing. Unknown to me was that it really was for a rental property which the loan company called him on the day before closing. So over 75 days for him to close with a investment property loan, that actually ended up being a balloon loan from the realty company. I lost on the delayed closing, and was not informed of the loan change and exactly what the problem was until the day of the real closing.

I lost money on carrying cost on a house for an extra nearly 2 months! Thus the proceeds were not the same.

Next house was a VA loan and a 45 day closing. I expected it to take longer than 45 days, but the VA closed on the loan right on time. And I knew mom would like selling to a vet, even if we got less $, even though that was not the case.

No loss, net proceeds were the same.

Next one, cash deal closed about a week late, seller, our fault as my brother had not vacated mom's home yet. Proceeds were slightly less, but our fault, and due to carrying costs.

Last one was my home, cash sell. Seller asked to close 2 weeks early after having the home inspection as all was good. Proceeds were slightly better than expected, less carrying costs.

So, in the end it matters a LOT if you can close on time. Some loans have a reputation of being difficult to close on time. So to the seller it may be 3% reduction, plus a possible slow closing is not worth it for the full price offer.
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