Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Buyers can ASK for anything. They ask for closing costs to be paid by the sellers. They ask for furniture sometimes so why not ask for the seller to pay membership to the YMCA or the CC?
In that case, why not just drop the offer amount? What's the difference between that and asking the seller to give you cash that you can go spend on something?
In that case, why not just drop the offer amount? What's the difference between that and asking the seller to give you cash that you can go spend on something?
Here's an example: If I want to buy a $500k house and put down 20% I need to come up with $100k plus closing costs to be at 20% (which is helpful these days). If I want to refinish the floors, replace carpeting and update the kitchen but don't want to put down more than $100k, I can offer $500k and then ask for a $30k decorating allowance. To the seller, it's the same as offering $470k. To the buyer (who would have had to come up w/ 20% of $470k + $30k for updates) it's $24k less out of pocket, but it still appears that they put 20% down.
Here's an example: If I want to buy a $500k house and put down 20% I need to come up with $100k plus closing costs to be at 20% (which is helpful these days). If I want to refinish the floors, replace carpeting and update the kitchen but don't want to put down more than $100k, I can offer $500k and then ask for a $30k decorating allowance. To the seller, it's the same as offering $470k. To the buyer (who would have had to come up w/ 20% of $470k + $30k for updates) it's $24k less out of pocket, but it still appears that they put 20% down.
Very true AND, the builder's sale prices/comps stay up......
Here's an example: If I want to buy a $500k house and put down 20% I need to come up with $100k plus closing costs to be at 20% (which is helpful these days). If I want to refinish the floors, replace carpeting and update the kitchen but don't want to put down more than $100k, I can offer $500k and then ask for a $30k decorating allowance. To the seller, it's the same as offering $470k. To the buyer (who would have had to come up w/ 20% of $470k + $30k for updates) it's $24k less out of pocket, but it still appears that they put 20% down.
Thanks - that makes sense. I guess you're effectively rolling the costs into your mortgage.
Thanks - that makes sense. I guess you're effectively rolling the costs into your mortgage.
EXACTLY!
Same thing with sellers. If a buyer offers you $100K but wants $4,000 for closing costs and $1,000 for decorating allowance, you are not going to NET $100,000. You are going to NET $95,000, even though the sales price on the contract says $100,000.
Same thing with sellers. If a buyer offers you $100K but wants $4,000 for closing costs and $1,000 for decorating allowance, you are not going to NET $100,000. You are going to NET $95,000, even though the sales price on the contract says $100,000.
Not sure I'd want to take out a 30-year loan to finance new carpeting.
Not sure I'd want to take out a 30-year loan to finance new carpeting.
I've heard buyers say this about the refrigerator also but when you buy a house, you are financing the stove and the microwave and the dishwasher for 30 years, aren't you?
And another way of looking at it is that we seldom stay in our homes for 30 years.
The national average that a person stayed in their home used to be 5 to 6 years and it used to be 3 to 4 years for our area. I'm not sure what it is anymore and I wonder if this economy will change that?
Vicki
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It's less money out of pocket for the buyers
