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We've just received a second offer to purchase our house. This buyer, like the first one, is an Ameridream client who is hoping to close before October 1st, when DPA programs are slated to be eliminated. We were going to give $5K back to the first buyers at closing, but they couldn't get the mortgage commitment. The new prospective buyers are asking for $18K back at closing (yes, we countered, but we haven't heard back from them yet). Because of what happened with the first would-be buyer, my realtors are making this next P&S (assuming we get there) contingent on the buyer's financing being reviewed by a lender that they know and trust.
This is getting way, way more complicated than I thought it would be. My husband and I saved very hard and lived frugally to buy this house nine years ago (putting money away weekly), and it's difficult for me to see prospective buyers putting $2K down and asking for so much money back. I'm starting to feel kind of angry. Anyway, thanks for listening.
Also a warning, the loans can actually close AFTER October 1st in many cases.... but they must be fully approved by the UW before October 1st. Also.... in order to avoid a last minute rush, many lenders are requesting the files be registered by September 1st or submitted shortly after.
So have your agent contact the lender and be 100% sure of the timetable before you spend lots of time/effort negotiating this. If you want it reviewed by the lender, do so before, not after you accept an offer.
I thought it was fabulous for people wanting to purchase their first, reasonable home. If they are asking for $18K that is a $300,000 home. In most states that's a heck of a nice house.
If $300,000 is a starter home in your area, then I can say I would have no problem with it. If $300,000 is a really nice home in your area, then I wouldn't be willing to pay that out. BUT...I am also not selling my home in the middle of a crappy market. Easy for me to say...
We've just received a second offer to purchase our house. This buyer, like the first one, is an Ameridream client who is hoping to close before October 1st, when DPA programs are slated to be eliminated. We were going to give $5K back to the first buyers at closing, but they couldn't get the mortgage commitment. The new prospective buyers are asking for $18K back at closing (yes, we countered, but we haven't heard back from them yet). Because of what happened with the first would-be buyer, my realtors are making this next P&S (assuming we get there) contingent on the buyer's financing being reviewed by a lender that they know and trust.
This is getting way, way more complicated than I thought it would be. My husband and I saved very hard and lived frugally to buy this house nine years ago (putting money away weekly), and it's difficult for me to see prospective buyers putting $2K down and asking for so much money back. I'm starting to feel kind of angry. Anyway, thanks for listening.
The pb do this because they can and who cares about the seller. Sad isn't it? The greed doesn't seem like greed to the pb but it is. My hubby and I have always been fair when making an offer even this last time when we still had a home to sell but we bought another home. We put 20% down and offered what the going price that the comps said was fair. We then got an offer on our FL home and we had to bring $15.00 to closing. That is not a lot but we had to come down so much. When the buyers agent said she had an offer for our home she asked was our home a short sale. Our agent said no we just put a lot down on the home. She had sold us that home three years prior. Just reading this board I think we should have been more like others and lowballed but then I ask myself could I live with that decision.
Good luck I hope everything works out.
The pb do this because they can and who cares about the seller. Sad isn't it? The greed doesn't seem like greed to the pb but it is. My hubby and I have always been fair when making an offer even this last time when we still had a home to sell but we bought another home. We put 20% down and offered what the going price that the comps said was fair. We then got an offer on our FL home and we had to bring $15.00 to closing. That is not a lot but we had to come down so much. When the buyers agent said she had an offer for our home she asked was our home a short sale. Our agent said no we just put a lot down on the home. She had sold us that home three years prior. Just reading this board I think we should have been more like others and lowballed but then I ask myself could I live with that decision.
Good luck I hope everything works out.
Maybe I should know but I don't. What is pb?
Secondly, the buyer has the responsibility to get the best deal possible. It's best to try to make a business decision but no buyer should feel bad about trying to get a deal. Sellers certainly don't feel guilty for making a profit.
Secondly, the buyer has the responsibility to get the best deal possible. It's best to try to make a business decision but no buyer should feel bad about trying to get a deal. Sellers certainly don't feel guilty for making a profit.
PB potential buyer. Yes the buyer does but some have ethics and others do not. Some live by do unto others.... and others don't. I am not the later.
We've just received a second offer to purchase our house. This buyer, like the first one, is an Ameridream client who is hoping to close before October 1st, when DPA programs are slated to be eliminated. We were going to give $5K back to the first buyers at closing, but they couldn't get the mortgage commitment. The new prospective buyers are asking for $18K back at closing (yes, we countered, but we haven't heard back from them yet). Because of what happened with the first would-be buyer, my realtors are making this next P&S (assuming we get there) contingent on the buyer's financing being reviewed by a lender that they know and trust.
This is getting way, way more complicated than I thought it would be. My husband and I saved very hard and lived frugally to buy this house nine years ago (putting money away weekly), and it's difficult for me to see prospective buyers putting $2K down and asking for so much money back. I'm starting to feel kind of angry. Anyway, thanks for listening.
If the $18K is all accounted for on the HUD-1, then you should be fine; but, a seller should never give "cash-back" to the buyer. Don't let anyone tell you otherwise.
Depends on the person I quess. We always offered like I posted what the recent comps were on the same type home. There are others that offer $20,000 or more less then the house is worth. We offered $10,000 less then the asking price since we had seen another new home almost like ours for the price that we offered in the same neighborhood and when the builder tried to counter we had that house to back our offer up.
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