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Old 07-26-2019, 05:31 PM
 
86 posts, read 68,572 times
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Is this for real? It has been suggested that we give 20% of the purchase price within 3 days of making our offer. That much in Summit is a HUGE amount. We are able to squeak by and do it, but I want to know it’s legit, and actually expected/done in that area. We are currently in MA, where you give a 1K check.
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Old 07-26-2019, 06:48 PM
 
540 posts, read 306,310 times
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Give $1. Or whatever you want.
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Old 07-26-2019, 08:42 PM
 
3,141 posts, read 2,379,582 times
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Don't go out of your budget. Yes, it's a very competitive market and they will lean towards people who can provide more up front cash, but don't go out of your budget.
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Old 07-26-2019, 09:03 PM
 
550 posts, read 1,171,743 times
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very dumb thing to do. such a BIG risk
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Old 07-27-2019, 05:50 AM
 
454 posts, read 406,047 times
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20% for a house in Summit? If that’s regular way in town then people are putting 250k deposits down? Doesn’t seem likely.

We were requested to put 50k/5% in a similar NJ town
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Old 07-27-2019, 10:23 PM
 
15,723 posts, read 5,623,899 times
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Quote:
Originally Posted by pippiep View Post
Is this for real? It has been suggested that we give 20% of the purchase price within 3 days of making our offer. That much in Summit is a HUGE amount. We are able to squeak by and do it, but I want to know it’s legit, and actually expected/done in that area. We are currently in MA, where you give a 1K check.
Most Mortgages require a 20% down payment ,it's not the town but your Mortgage company. Not quit sure what it is you're talking about?
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Old 07-28-2019, 12:28 AM
 
Location: Jersey City
6,542 posts, read 16,410,466 times
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Quote:
Originally Posted by G1.. View Post
Most Mortgages require a 20% down payment ,it's not the town but your Mortgage company. Not quit sure what it is you're talking about?
An earnest deposit is not the down payment. An earnest deposit is submitted with or soon after your offer and it’s supposed to demonstrate to the seller that you are serious. If and when you close, the earnest deposit can be applied toward the down payment.

My earnest deposit 2 years ago for a condo in JC was only about $1500. 20% is ridiculous and risky.
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Old 07-28-2019, 01:39 PM
 
86 posts, read 68,572 times
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Quote:
Originally Posted by G1.. View Post
Most Mortgages require a 20% down payment ,it's not the town but your Mortgage company. Not quit sure what it is you're talking about?
My realtor called it a down payment, and the whole time, I understood it as the money you bring to the closing (whatever I get for selling my house minus my mortgage balance). Nope! Turns out they use that same “down payment” terminology to refer to the check you write to go along with your offer. It is made out to your own attorney, not the seller or their attorney. Apparently this IS the norm for these highly competitive areas. It’s crazy to me to know we can afford the mortgage payments on a 1.2+ house, but can’t get one because we won’t have the 20% cash til we close on our house (and we actually end up with more like 65%). So bizarre.
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Old 07-28-2019, 03:35 PM
 
540 posts, read 306,310 times
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How come current market is hot?? Saw listings take long time to sell.
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Old 07-28-2019, 04:28 PM
 
Location: Jersey City
6,542 posts, read 16,410,466 times
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Quote:
Originally Posted by bluewin888 View Post
How come current market is hot?? Saw listings take long time to sell.
Depends on the location and price point.

Here in JC, for instance, the market is hot for properties under $750k. It’s cool-to-cold for properties over $1M. A building down my street full of $450-650k condos sold quickly, while the 2-family house a few doors down listed at $1.5M a few months ago and has had at least two price reductions.

I’m sure other towns could tell the same story, but with different prices depending on the town.
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