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Old 01-14-2018, 08:31 PM
 
387 posts, read 1,443,676 times
Reputation: 156

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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?
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Old 01-14-2018, 08:36 PM
 
1,327 posts, read 1,218,205 times
Reputation: 9547
If it's a seller's market, the seller doesn't have to "work with you" because another buyer will be along very soon who probably won't be making the same demands for handouts.


The seller doesn't owe the buyer anything.
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Old 01-14-2018, 08:38 PM
 
Location: Rochester, WA
3,800 posts, read 2,017,708 times
Reputation: 10424
The sellers have their own dreams and desires about how much they'd like or need to net from the sale. It ~probably~ is about their bottom line, not your loan program.

If you qualify for more $$, but don't have the upfront cash to pay for your own closing costs, you may need to increase the offer amount to cover your closing costs, if the market is strong.
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Old 01-14-2018, 08:43 PM
 
387 posts, read 1,443,676 times
Reputation: 156
Quote:
Originally Posted by Chaofan View Post
If it's a seller's market, the seller doesn't have to "work with you" because another buyer will be along very soon who probably won't be making the same demands for handouts.


The seller doesn't owe the buyer anything.
Handouts? Thanks for the snarky answer. It's very typical for buyers, NACA or not to ask for closing costs. Can the seller say no? Of course, they can. Why answer with a nasty response? I'm sure you have better things to do with your day.
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Old 01-14-2018, 08:46 PM
 
387 posts, read 1,443,676 times
Reputation: 156
Quote:
Originally Posted by Diana Holbrook View Post
The sellers have their own dreams and desires about how much they'd like or need to net from the sale. It ~probably~ is about their bottom line, not your loan program.

If you qualify for more $$, but don't have the upfront cash to pay for your own closing costs, you may need to increase the offer amount to cover your closing costs, if the market is strong.
Thank you. I appreciate your input.
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Old 01-15-2018, 07:10 AM
 
Location: Cary, NC
31,534 posts, read 55,170,067 times
Reputation: 30090
When the "seller pays," if the seller is smart and negotiating for best net sales proceeds, you really are just financing your CC.

So, your offer price has to cover the seller's goal for net proceeds and your CC.
I.e., what Diana said, you often have to bump the price to make it work.

On the NACA tangent, how is NACA perceived in your community? Some people want little to do with NACA or NACA buyers.
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Old 01-15-2018, 08:50 AM
 
1,327 posts, read 1,218,205 times
Reputation: 9547
Quote:
Originally Posted by atlcharm View Post
Handouts? Thanks for the snarky answer. It's very typical for buyers, NACA or not to ask for closing costs. Can the seller say no? Of course, they can. Why answer with a nasty response? I'm sure you have better things to do with your day.
Call it whatever you want. The fact remains that the buyer's interest rate is not the responsibility of the seller.


Perhaps a less expensive house would be a better choice.
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Old 01-15-2018, 09:48 AM
 
9,160 posts, read 7,229,139 times
Reputation: 22384
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.
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Old 01-15-2018, 12:14 PM
 
5,605 posts, read 4,145,183 times
Reputation: 12335
If you really want/need the interest rate reduction just offer them 3% over the asking price and include the rate buy down in the offer.

We sold a home FSBO once where the buyers asked we pay the agent they were working with 3%. She literally did nothing for us other than drive them to see the house. We were glad to do so once they increased their offer to cover the cost. We felt, as your sellers might, that we were glad to oblige just not on our dime.
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Old 01-15-2018, 12:32 PM
 
Location: Philaburbia
31,153 posts, read 57,160,877 times
Reputation: 51994
Quote:
Originally Posted by atlcharm View Post
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
Sounds like you're looking for a reason to take offense. The seller is not obligated to save you money.

If I were you, I'd either increase the offer to cover the 3% needed to buy down your rate, or move on.
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