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We are interested in a home in Preston and wondering if anyone has heard of negotiating the upfront club membership to the Preston Country Club in the negotiation. We were thinking of asking the realtor to do this off of his cut, since we are not working with a buyers agent.
We are interested in a home in Preston and wondering if anyone has heard of negotiating the upfront club membership to the Preston Country Club in the negotiation. We were thinking of asking the realtor to do this off of his cut, since we are not working with a buyers agent.
Anyone have input?
Thanks
Is the agent working as a dual agent, for you and the seller? If so, I'd ask if he has given a discount to his sellers or if he is taking the full commission (typically split between the listing agent and the selling agent).
I have often negotiated the membership fees for my buyers...usually asking the builder to pay.
Isn't the country club separate from the various housing developments (a separate legal entity)? If so, how does one include the fees in a house deal?
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?
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?
As long as the lender allows it, should be fine.
Vicki
That is the key, the Preston membership fee is steep enough that most lenders *these days* I think would balk at any significant discount rolled into the price of the home. My guess is it's a "no-go" unless we're talking a 1 Mil+ home in Preston, but like Vicki says, it cannot hurt to ask!
I do remember a new home builder (not in the Preston neighborhoods but nearby) offering memberships to Preston at one point, my assumption was that he wasn't having to pay full price for those members however.
That is the key, the Preston membership fee is steep enough that most lenders *these days* I think would balk at any significant discount rolled into the price of the home. My guess is it's a "no-go" unless we're talking a 1 Mil+ home in Preston, but like Vicki says, it cannot hurt to ask!
I do remember a new home builder (not in the Preston neighborhoods but nearby) offering memberships to Preston at one point, my assumption was that he wasn't having to pay full price for those members however.
I know Drees was doing that for Coles Creek. You could ask for a decorating allowance to cover it. Our lender currently allows up to 6% of the purchase price in concessions, but some are more strict.
I know Drees was doing that for Coles Creek. You could ask for a decorating allowance to cover it. Our lender currently allows up to 6% of the purchase price in concessions, but some are more strict.
Yeah, there is more flexibility with new construction because the builder can take a hit on materials or services... Those still equate to a tangible asset that is worth a market price (even though the builder provided it at a discount). At the end of the day the bank just cares that the sale price isn't more than the value of the home.
If the OP is buying an existing home, I can't see a bank allowing for any substantial discount towards the membership from the buyers. $3-4K towards the fee possibly since that's just like throwing in some cash to close, but we're talking a Preston membership. That's only 10% of the fee. It might work coming from the realtor's commissions.
All speculation on my part. One just has to ask and see!
I believe that Highcroft Village has been doing this too, as long as you apply within 60 days.
The home must appraise for the total purchase price with the membership bringing "No Additional Value."
Yeah, there is more flexibility with new construction because the builder can take a hit on materials or services... Those still equate to a tangible asset that is worth a market price (even though the builder provided it at a discount). At the end of the day the bank just cares that the sale price isn't more than the value of the home.
If the OP is buying an existing home, I can't see a bank allowing for any substantial discount towards the membership from the buyers. $3-4K towards the fee possibly since that's just like throwing in some cash to close, but we're talking a Preston membership. That's only 10% of the fee. It might work coming from the realtor's commissions.
All speculation on my part. One just has to ask and see!
I know that the lender we work with allows up to 6% of the purchase price in concessions. On a $500k house, that's $30k. A social membership to Preston is about half that. I was suggesting that if you can't work out a deal with the realtor (I have no idea how that would work), ask for a decorating allowance to cover the initiation fee. Of course the seller and the lender have to agree and the house has to appraise appropriately.
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