When sales brochure states owner wants down payment, and then new loan (agent, Realtor)
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When sales brochure states owner wants down payment, and then new loan at specific interest, what does that even mean?
Buyer, if doesnt have total sales price worth of money on hand, gets loan from bank. Buyer pays bank the down payment, and gets rest of money equal to sales price. Then Buyer hands all to the owner to complete the sale.
Just been looking at some sales brochure, and read in the "finance" section, the owner wants a 35% down payment, and then new loan for rest. Why say that?
IMHO, the seller wants to be certain that the potential buyer isn't just kicking tires. In other words, "Don't bother if you want to waste my time unless you are making a serious offer". Often, they seller wants a solid offer, or if the house won't appraise to the selling price and qualify for a conventional loan without the large down payment. We can only speculate at this point.
IMHO, the seller wants to be certain that the potential buyer isn't just kicking tires. In other words, "Don't bother if you want to waste my time unless you are making a serious offer". Often, they seller wants a solid offer, or if the house won't appraise to the selling price and qualify for a conventional loan without the large down payment. We can only speculate at this point.
This COULD be the reason...but...35% is a rather large downpayment, and would exclude a great many buyers, even buyers with strong financials.
I wonder if this is an attempt to limit the interest to "our kind of people."
Is there something out of typical here, either very high or very low price??
I agree that a 35% down payment is very high, but we don't know for certain why it was requested. Some sellers can demand ridiculous things even if their Realtor advised against it. We can only speculate. Just offering my opinion on the matter.
IMHO, the seller wants to be certain that the potential buyer isn't just kicking tires. In other words, "Don't bother if you want to waste my time unless you are making a serious offer". Often, they seller wants a solid offer, or if the house won't appraise to the selling price and qualify for a conventional loan without the large down payment. We can only speculate at this point.
Probably is that. I wasnt sure if this was a normal practice. Like when they advertise below market rents. The brochure I see is for an investment multi-family.
Quote:
Originally Posted by rational1
This COULD be the reason...but...35% is a rather large downpayment, and would exclude a great many buyers, even buyers with strong financials.
I wonder if this is an attempt to limit the interest to "our kind of people."
Is there something out of typical here, either very high or very low price??
Is possible too. In NYC, sometimes, you cannot get a tour of the property, or any kind of info like floorplans unless you send in an official offer.
The property I see is for investment multi-family in Orange County CA for about $2mil. I am thinking is this too good to be true. Well, its not along the shoreline as in one of the larger cities of that county. But I have been to both places before, and neither city looks that rough at least not by Northeast standards.
I guess the owner wants to make it harder to sell his property. Try asking him or his agent.
Yeh I just was not sure whether this is a common practice. I wanted to ask here first. I not want approach them, and make myself seem as if I am inexperienced, which I am of course.
One time I ask what must have been a silly question, and I never hear back from broker. Probably only wants "serious" buyers.
They may be offering owner financing if they are talking about down payment and interest rate?
The sales brochure specifically stated pay 35% down first, and then get a loan for rest of money and names a specific interest rate for 10 years too, and 30 years of amortization.
Why will some one want owner financing, if buyer can just buy out completely with own money?
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