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Silverfall and MikeJaquish, I'm actually the buyer in this one, trying to figure out what a seller might go for. :-) The numbers are all hypothetical -- they don't actually relate to the situation that might come to pass. It does seem odd to me that the buyer might get cash at closing (legally) but if it could work out, that would be great. I DO have down payment money AND reserves AND I have a job that I can only lose through gross negligence (so it's not going to happen!), but it would be nice to be able to keep a few thousand dollars liquid.
I'll be paying extra on the mortgage every month anyway (as I do with my current mortgage), so the few extra thousand on the mortgage would be "made up" relatively quickly.
Thanks for all the replies!
If you can afford to pay off the "extra" in a few months, i.e., it really is not necessary, I would suggest you just make the lower offer, and keep the seller's net as good as possible while being confident you have not inflated the price so it won't appraise.
It just isn't rational as a seller to care about anything other than getting the highest net offer if all other things are equal.
I'm sure there is some grumpy old person who thinks it is morally unnacceptable to have to pay someone's closing costs. But that would fall under the irrational category.
Silverfall and MikeJaquish, I'm actually the buyer in this one, trying to figure out what a seller might go for. :-) The numbers are all hypothetical -- they don't actually relate to the situation that might come to pass. It does seem odd to me that the buyer might get cash at closing (legally) but if it could work out, that would be great. I DO have down payment money AND reserves AND I have a job that I can only lose through gross negligence (so it's not going to happen!), but it would be nice to be able to keep a few thousand dollars liquid.
I'll be paying extra on the mortgage every month anyway (as I do with my current mortgage), so the few extra thousand on the mortgage would be "made up" relatively quickly.
Thanks for all the replies!
There is no reason to offer the seller a bonus to get them to contribute toward your costs. A seller who is annoyed and working off of principal in this scenario would not be too bright.
Silverfall and MikeJaquish, I'm actually the buyer in this one, trying to figure out what a seller might go for. :-) The numbers are all hypothetical -- they don't actually relate to the situation that might come to pass. It does seem odd to me that the buyer might get cash at closing (legally) but if it could work out, that would be great. I DO have down payment money AND reserves AND I have a job that I can only lose through gross negligence (so it's not going to happen!), but it would be nice to be able to keep a few thousand dollars liquid.
I'll be paying extra on the mortgage every month anyway (as I do with my current mortgage), so the few extra thousand on the mortgage would be "made up" relatively quickly.
Thanks for all the replies!
Well you don't get the cash in your hands or anything. It just gets shifted from the sellers column to your column. You just bring in less money to close.
I think the biggest issue would be a concern of the house appraising for $300K but not for $307K. So if it doesn't appraise at $307K, would you be willing to take out the request for closing costs? I would put that requirement into the contract if I took the higher offer with paid closing costs.
So long as laws aren't broken... it's all about the bottom line. How you get there, which still includes a valuation for contingencies and time until closing date among other things, is largely immaterial.
But $1000 one way or another shouldn't be a factor in a $300,000 transaction
hth
As a seller, I would be nervous about a buyer concerned about $1K on a $300K home.
I might dance with them but only if they were the only one to dance with, like the fat girl at the dance....otherwise...get out of my life....I spill that much at the bar...LOL
Um, not concerned about $1k. Just would like to keep more $ liquid if possible. I don't HAVE to, I would just LIKE to.
And NinaN, you are right, the appraisal would still have to work out. With the particular house I am thinking about, I believe it would. Will find out more when I meet with my buyer's agent (which I decided to get!).
As a seller, I would be nervous about a buyer concerned about $1K on a $300K home.
I might dance with them but only if they were the only one to dance with, like the fat girl at the dance....otherwise...get out of my life....I spill that much at the bar...LOL
As a buyer I would be nervous about someone who didn't realize the net I was offering was the same and probably just move on to the abundance of other homes on the market.
Any seller would be crazy not to take the higher offer IMO. They'd make a little more money even with paying the cc.
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