Now here's an offer you can refuse. I have a 2005 house with a pool listed for $218,900. The sellers built it last year, but illness forces them to return North when this home sells.
I got a verbal offer of $205,000 today, but here's the clincher! They wanted to offer this price AND have the seller give them $25,000 so they can buy furniture. I can see financing closing costs, but furniture? They don't want the furniture in the house, which is negotiable, they want to buy new furniture. (This seems like a lot of money to furnish 1228 s/f under air!)
I suggested to the other agent that the buyers may want to increase the offer to include the closing costs. Perhaps then, they would have some money for furniture, or there is always Rent-to-Own.
Most lenders have a max of 3% - they're asking for 12%. Good luck.
Suggest to them that if they can't afford this house, they should look at lower priced properties.
$25,000? What kind of antiques or designer stuff are they planning to buy? Or do they just want to furnish it and keep the change?
Seller concessions are for closing costs and prepaids. Regardless of the percentage, under conforming guidelines you can't walk away from the closing with cash for furniture or anything else.
If you are financing more than 90%, you will be capped at 3%. This is the breakdown, be careful not to exceed it on your purchase agreeements:
- Primary residence/second home > 90% LTV = 3% of value.
- Primary residence/second home > 75-90% LTV = 6% of value.
- Primary residence/second home < or = 75% LTV = 9% of value.
- Non-owner occupied properties = 2% of value.
I am amazed how people want something for nothing. Honestly, I wonder if my generation ever really worked for anything.
Maybe the buyers can brag about how they got a great deal from those sick people (READ: take advantage) after church on Sunday.
Getting a deal is one thing but this is just gauche.
Isn't the rule of thumb - "If you're not embarrassed by your first offer, it's too high."
I have no problem with low-ball offers, you have to start somewhere and you never know what will happen. Asking for 25K for furniture doesn't make sense though.
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