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.
I have two offers on my home and need free advice on which one is better.
Offer 1 : Full price, pay in cash, contingent on selling current home for which a P&S has been signed. Scheduled closing for their home sale is 6/28.
Offer 2 : Full price + $3K. Spoke w/ mortgage broker and are strong buyers, need 85% financing.
Offer 1 is great because it's cash but the possibility exists for their home sale to fall through. Offer 2 is great because it's more money but they'll need to get financing which could fall through.
The buyer for the other house is a developer. We think they are going to raze the house and rebuild. There was no mortgage contingency in their P&S (which I and my lawyer have read). They appear to be fairly well along.
Don't know much about the other party. They are pre-approved.
I would be worth asking if offer one would consider removing that contingency. Who knows? They might if they like the house enough and I'm sure they know that in this market it is hard to sell and therefore a lot to ask of a seller to consider excepting. I can't figure out why they need to make an offer that way if they are paying cash. I think in most cases this is done because they buyer can't handle two house payments for very long.
I have two offers on my home and need free advice on which one is better.
Offer 1 : Full price, pay in cash, contingent on selling current home for which a P&S has been signed. Scheduled closing for their home sale is 6/28.
Offer 2 : Full price + $3K. Spoke w/ mortgage broker and are strong buyers, need 85% financing.
Offer 1 is great because it's cash but the possibility exists for their home sale to fall through. Offer 2 is great because it's more money but they'll need to get financing which could fall through. +1 on asking them to remove the contingency - I didn't even think of that initially...although if their buyer doesn't close they are still contingent....
Any thoughts? Thanks.
I would ask to see if Offer 1's buyer has a mortgage commitment yet and ask to see it if they do. The mortgage commitment will pretty much tell you the likelyhood of that deal falling through or not.
Offer 2: If the lender has already looked at all the buyers documents (pay stubs, tax returns, bank statements etc) and there are no red flags then there should be nothing wrong with this deal either - unless you expect appraisals to be a problem.
In the end it's going to be the one that you are most comfortable with not falling through. I have to say, in this market it's great to have 2 full price offers to have to decide between!
I would not accept offer #2 until they produced a pre-approval letter from their bank. If they will be financed by the bank, the letter is easy enough to get. Why is cash better than a check from the bank for more money?
I would not accept offer #2 until they produced a pre-approval letter from their bank. If they will be financed by the bank, the letter is easy enough to get. Why is cash better than a check from the bank for more money?
Because for $3000 you don't have to worry about the whole mortgage contingency which will cover the buyer from not qualifying for any reason - which nowadays can be as simple as having a large deposit in your bank account to not having enough reserves in your bank account.
Now 10K+ I would take a mortgaged offer over cash any day of the week.
I have two offers on my home and need free advice on which one is better.
Offer 1 : Full price, pay in cash, contingent on selling current home for which a P&S has been signed. Scheduled closing for their home sale is 6/28.
Offer 2 : Full price + $3K. Spoke w/ mortgage broker and are strong buyers, need 85% financing.
Offer 1 is great because it's cash but the possibility exists for their home sale to fall through. Offer 2 is great because it's more money but they'll need to get financing which could fall through.
Any thoughts? Thanks.
Go with Offer #2 after speaking with their Loan company and getting the green light from them on 85% financing.
PS we just closed on a home with 90% financing was not hard.
Offer #2 is approved up to $375k and their offer would bring the financing to $311k.
Our agent believes Offer #2 is stronger.
It's a good problem to have, but very difficult to make a decision.
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.
