U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New York > Long Island
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-10-2009, 07:11 AM
 
Location: Long Island
9,639 posts, read 21,133,984 times
Reputation: 5410

Advertisements

Quote:
Originally Posted by lamontnow View Post
The broker also says that another buyer is now very, very interested.

And I thought it was a "buyer's market"
It is still a buyers' market. However, at the moment, homes up to around the very low $500's are selling! Lots of first time home buyers out there ready to close the deal. Could be a combination of low interest rates and the stimulus $$, together with lower prices... your guess. And the cut-off for the stimulus eligibility is closing by Nov. 30th - so the pressure is on.

I have one couple that was really interested in one of the first houses they saw, certainly not mint condition, but it fit their needs well. They wanted to look around some more, to make sure there was nothing better out there, and now the house is in contract - with another buyer.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 08-10-2009, 07:35 AM
 
Location: Long Island
9,639 posts, read 21,133,984 times
Reputation: 5410
Quote:
Originally Posted by lamontnow View Post

And btw the cash for the cash offer would come from my home equity line of credit.
Sorry to say that could be a red flag right there! To you, your HELOC is like cash.
To a seller, it's still borrowed money... maybe even less--we've all heard about banks cutting or eliminating HELOCs.

Worst case scenario: Picture this, if you will, a Seller accepts your offer, you go into contract without mortgage contingency because you have the HELOC, and while the attorneys deal with title and CO issues, your bank cuts or eliminates your HELOC... now you're stuck with performing, or losing the deposit you paid at contract signing.
Leaves you with less money and/or struggling to get a mortgage and the Seller either loses you as the Buyer (while another one just found something else) or has to wait to see if/when you can get a mortgage.

A HELOC is not the same as cash, unless you've accessed the money and put it in the bank.

Just my 2 cents...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-10-2009, 09:12 AM
 
1,263 posts, read 2,222,914 times
Reputation: 511
Quote:
Originally Posted by Elke Mariotti View Post
Sorry to say that could be a red flag right there! To you, your HELOC is like cash.
To a seller, it's still borrowed money... maybe even less--we've all heard about banks cutting or eliminating HELOCs.

Worst case scenario: Picture this, if you will, a Seller accepts your offer, you go into contract without mortgage contingency because you have the HELOC, and while the attorneys deal with title and CO issues, your bank cuts or eliminates your HELOC... now you're stuck with performing, or losing the deposit you paid at contract signing.
Leaves you with less money and/or struggling to get a mortgage and the Seller either loses you as the Buyer (while another one just found something else) or has to wait to see if/when you can get a mortgage.

A HELOC is not the same as cash, unless you've accessed the money and put it in the bank.

Just my 2 cents...
I think that's extremely unlikely. I just opened the HELOC a few weeks ago. Why would they now cut or eliminate it, or anytime in the near future? Anything is possible but I just don't see that happening.

Last edited by lamontnow; 08-10-2009 at 09:23 AM..
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-10-2009, 10:23 AM
 
Location: Tri-State Area
2,942 posts, read 5,643,579 times
Reputation: 1831
Quote:
Originally Posted by lamontnow View Post
I think that's extremely unlikely. I just opened the HELOC a few weeks ago. Why would they now cut or eliminate it, or anytime in the near future? Anything is possible but I just don't see that happening.
HELOC's are not cash, they are a form of credit. They can be rescinded at any time at the bank's discretion. As a seller, I wouldn't be satisfied with that either. Cash is cash in a bank, credit union or U.S. Treasury bills, bonds, T-notes. Anything else that requires approvals, or a market-based transaction to liquidate - stocks, corporate bonds, commodities should not be considered cash.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-10-2009, 10:26 AM
 
12,239 posts, read 16,061,408 times
Reputation: 7940
Quote:
Originally Posted by lamontnow View Post
No it's not that. Their asking price is actually about 20% higher than what they paid seven years ago, so they're making a decent profit. The broker said that they are very interested in another house and that that they need to sell at a certain price in order to be able to afford to buy that house.
I think that if I come up 4 or 5% they'll accept it. I would do it if I were in love with the house. I like it but I don't think that much. It's a tough decision.
When I bought my apartment, the offer I originally made was 3x what the guy bought it for 8 years ago. He woulsn't accept a 3x profit and of course wanted more. We met in the middle, but sellers are greedy as f***.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-10-2009, 12:46 PM
 
Location: Long Island
9,639 posts, read 21,133,984 times
Reputation: 5410
Quote:
Originally Posted by FrmlyBklyn View Post
HELOC's are not cash, they are a form of credit. They can be rescinded at any time at the bank's discretion. As a seller, I wouldn't be satisfied with that either. Cash is cash in a bank, credit union or U.S. Treasury bills, bonds, T-notes. Anything else that requires approvals, or a market-based transaction to liquidate - stocks, corporate bonds, commodities should not be considered cash.

Thanks for confirming my post
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-10-2009, 12:53 PM
 
Location: Nassau, Long Island, NY
16,408 posts, read 31,140,326 times
Reputation: 7295
Quote:
Originally Posted by lamontnow View Post
I think that's extremely unlikely. I just opened the HELOC a few weeks ago. Why would they now cut or eliminate it, or anytime in the near future? Anything is possible but I just don't see that happening.
You NEVER KNOW with these $@^$%$@ banks, that's why!

How much did you pay to have your home appraised, etc.?

From some stories I have heard, they collect all these fees from people and then if the people want to actually USE the line of credit, it's "whoa, now ... we have to do a new appraisal ... blah blah blah" and it's a chance for them to collect more fees (and possibly turn you down by reducing or eliminating the line of credit).

If you want to use the HELOC to buy another home, then I would say your safest way of actually offering all cash is to take the HELOC money right now and put it in an account.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-10-2009, 01:13 PM
 
41 posts, read 113,801 times
Reputation: 23
You are focusing on % discount on the asking price. If it is priced appropriately, what is the point of getting it at a certain % off, it already is priced right. At the end of the day, it is about the right price and value for the property, other than that, it's nothing. ok, raise their asking price 25% and now you are getting it for a 31% discount. Make it better? Pay what you think is fair and if not, let the seller keep their property and you move on.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-10-2009, 02:26 PM
 
1,303 posts, read 3,126,935 times
Reputation: 346
Buying another home with a HELOC seems risky in general to me...especially when the bank calls in the credit line...and especially in the current housing market. Cash is a whole other story.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-11-2009, 06:30 AM
 
6 posts, read 28,055 times
Reputation: 15
Quote:
Originally Posted by stevej64 View Post
Lets say house is 400k 9% cash discount 6% to real estate owner nets 340k.
Right. In addition if they are up 20% in two years then bidding 9% lower than the asking price really puts them closer to only 8% up overall. Then subtract your 6% broker fees, etc. All in all they're lucky, compared to some areas, to be up the 20%. That's the market they're in so good for them.

Where I live it's a very steady market. When we got this house two years back we paid cash. There was an advantage. Six People saw the house in one day. Two, aside from us, made offers by the next morning at asking price. (Perhaps others made offers at less than ask, we just didn't hear about those offers) We got it due to lack of mortgage co. delays and a double deposit. Faster closing, the ability to make a double deposit to steal it away, these are the advantage to paying cash to a seller. Assuming that also warrants a 9% discount, or any, probably not unless it's a distress situation or it's just overpriced to begin with. You answered that already though. Two other people made offers higher, just didn't get financed, so we know it's not a high asking.
Rate this post positively Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New York > Long Island
Similar Threads
View detailed profiles of:

All times are GMT -6. The time now is 03:49 AM.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top