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Old 07-19-2012, 03:13 PM
 
28 posts, read 35,944 times
Reputation: 15

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We have enough to put 10% down. There's no one that could 'gift' us the money. Firstly because neither of our parents (no siblings) have the money to gift even if we give them they cash and they write us a check. On top of that, there's no one that wants to show their bank statements to prove they've 'gifted' us this money. The reason we can't show proof is because we take our cash out of the banking systems. It's just our personal preference. When income tax is direct deposited, we withdraw the money asap. It's what they call 'mattress money'. We've asked if they would accept income tax returns and along with a w'd receipt and they say no.

If anything our agent has clued them in that we aren't willing to pay over comp price when the comp is the better home. I told her I wouldn't be overpaying for this home, although I would love to have it for the sake of being closer to family. We've started looking at houses a city north of us... homes are bigger, with more bathrooms, more bedrooms, basements etc, for 20k less. Seems completely backwards but the smaller town with no local jobs has higher priced real estate.

They sellers have stated 114k is their lowest. I don't think there's anymore ball to play.
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Old 07-19-2012, 03:17 PM
 
Location: BNA -> HSV
1,887 posts, read 3,277,537 times
Reputation: 1458
No bank accounts, but you have internet access?
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Old 07-19-2012, 03:20 PM
 
28 posts, read 35,944 times
Reputation: 15
Never said I didn't have bank accounts.
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Old 07-20-2012, 04:20 PM
 
Location: Phoenix AZ
5,920 posts, read 10,440,488 times
Reputation: 9226
The "comp" from a year ago is gone.

You can't buy it for $108k, and you couldn't have gotten it for $108k last year, unless *you* had been willing to pay more than $108k.

Just like "Mad max", two men enter, one man leaves (with the keys!) when there are two buyers and one house.

That is the situation you would face if you had a time machine, and could go back to that magical day.

Now you're looking at spending $900 per month for rent, for at least a year (that's $10,800) in rent over what you think is potentially $6k in "savings"...

And some used drapes.

You're stuck in a "loop" over the massive "profit" the seller is making, and that really is none of your business, or concern.

I bought a house in February for $73k, and the seller owed over $200k to his banker - I laughed a bit, but it wasn't *my* problem. I would have still bought the house at $73k if the seller paid $10k. What they paid is irrelevant.

What is relevant is the comps that are on the market today. Is there a better house in that neighborhood for less than $114k?

If the answer is no, then you've found your answer, and the sellers bottom line.

Further, you've said the other homes in the area won't pass with your financing, and this one will.

That's a big deal.

Win-win, buy your own drapes!

Last edited by Zippyman; 07-20-2012 at 04:35 PM..
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Old 07-20-2012, 05:22 PM
 
28 posts, read 35,944 times
Reputation: 15
Everyone is out to get a deal in this market. I'm a wheel and dealer - I love to walk away from a purchase feeling like I got the better deal than the next guy and I need to know I will be able to sell this home if the need arises. It's just ingrained in me.

We ask for a list of upgrades they've done since they've owned the place and we are thinking of making an offer Monday.
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Old 07-20-2012, 07:47 PM
 
Location: Phoenix AZ
5,920 posts, read 10,440,488 times
Reputation: 9226
Quote:
Originally Posted by BizzyIzzy View Post
Everyone is out to get a deal in this market. I'm a wheel and dealer - I love to walk away from a purchase feeling like I got the better deal than the next guy and I need to know I will be able to sell this home if the need arises. It's just ingrained in me.

We ask for a list of upgrades they've done since they've owned the place and we are thinking of making an offer Monday.
And what makes *you* different from any *other* buyer in this market?

Do all the other buyers expect to lose money on their homes? (no)

Are they pickier than you? (no)

Can you pay *cash* today for a screaming deal? (no)

Are you willing to put in sweat equity? (no)

Having a loan pre-approval doesn't make you an "investor" - and a USDA loan isn't a picnic for the seller either, they're liable to get held up for inconsequential repairs, an appraisal that may or may not reflect the market, and probably at best, you can offer a six-week close, if the stars align and there are no "gotcha's" anywhere in your credit past.

In my area, any offer with a USDA or FHA loan behind it in the sub $150k market is likely to go straight to the trash. Asking for appliances, drapes, and "a list of improvements" would probably get you an obscene gesture from the listing agent, but it certainly wouldn't be accepted.

The premise of the thread was finding out of you were out-of-line by submitting a lowball offer. I suspect you now know where most lowball offers end up. Once in a great while, someone wins the lottery, and once in a great while, someone "scores" a deal at 30% under true market value- but the people who score those deals are usually in the business & hunting those deals 24/7.

They aren't writing offers in a depressed market with USDA financing & demanding that the sellers leave the drapes.
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Old 07-20-2012, 08:42 PM
 
28 posts, read 35,944 times
Reputation: 15
I don't understand your hostility. I'm not better than anyone else, but maybe I'm not willing to settle. Homes aren't moving in my area. This home has been for sale for a year. Comp home with a 2 car garage sold for 108k on a FHA loan. I'm not demanding window treatments. I don't care what obscene gestures the listing agent is making. We actually do have money for a conventional loan, it's unfortunate we can't use it. My credit score is over 800, my husbands score is 780. If USDA is available to me I am going to use it.

The home we look at before this one would require sweat equity and we were willing to do it. I was more excited about that house than I am this house. Loved the layout, it just wasn't going to work for the price they wanted. We would have been underwater with the amount of money fixes and upgrades cost. This was a supposed motivated seller whose home was on the market 2 years.

Everyone wants a deal that's all I was saying.
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Old 07-20-2012, 08:52 PM
 
28 posts, read 35,944 times
Reputation: 15
Also I don't feel out of line with the offer I made for the home. The comp sold for 108 and I offered 7.8% less. I am at this point getting this home for around 109 when you include the closing costs and the washer and dryer plus a better interest rate. A buyer is always going to try to get the best deal they can. It's nature. Seller will try and do the same. It's my right to know what updates were done to justify the price of the home.

Good day sir.
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Old 07-23-2012, 01:37 PM
 
Location: 3rd Rock fts
745 posts, read 941,018 times
Reputation: 304
^^I feel for you BizzyIzzy. There’s nothing wrong with wanting a fair deal when buying a home during this Great Recession/Depression.

I’ve been looking in NW Ohio for a home & noticed the same thing in this price range ($90~$120k)—the homes are overpriced! Broadly speaking, there is an Investor Special market ($70k +$30k improvements), & a Move in Ready market (GOV'T backed that demands full price). There’s nobody else buying homes in this price range.

Because of this situation, homes can sit for a long time. The seller/Realtor will eventually get the price they want because the GOV'T backed “Cadillac loans” are keeping demand/prices stable, regardless of the current depressed market.

If it turns out that you don’t buy this house, I would rethink the housing predicament more carefully; then decide if you should wait until after the elections—JMHO. Good luck.
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Old 07-23-2012, 02:03 PM
 
14,365 posts, read 16,282,448 times
Reputation: 12871
Hey Bizzy:
Wishing you good luck. You are smart to go after a good deal. I hope it works out for you.

Pls post with how things are going and I hope to read that you are under contract for a price that is good for you.
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