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AN OFFER YOU CAN REFUSE

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.

Comment balloon 10 comments • Shannon Moore • August 28 2006 08:47PM

Comments

I wonder how they plan to get that by their lender? You have to love people with a sense of humor.
Posted by Jason King (Coastal Mortgage) almost 13 years ago

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?

Posted by Sharon Simms, St. Petersburg FL - CRS CIPS CLHMS RSPS (Coastal Properties Group International - Christie's International) almost 13 years ago

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.

Posted by Jason King (Coastal Mortgage) almost 13 years ago

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. 

Posted by Brian Brady, 858-777-9751 (San Diego VA Home Loans/858-777-9751) almost 13 years ago
Amazing! Buyers who don`t want to buy! Who`s the Dumb Realtor representing the Buyers?
Posted by Omar Camejo (Florida List For Less Realty,Inc.) almost 13 years ago
Here's a prime example of a Buyer taking advantage of a Buyer's Market. I would be embarrassed to make this offer, but none-the-less, I'd make it. I hope your Seller told them "no thanks".
Posted by Mrs. Sheri Ann Johnson, GRI (Tropic Shores Realty) almost 13 years ago

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.

Posted by Jason King (Coastal Mortgage) almost 13 years ago
Sounds to me like borderline mortgage fraud!
Posted by GA-agent.com Georgia Real Estate Directory (GA-agent.com) almost 13 years ago
In some places, asking for 10% back would seem to be illegal.
Posted by Adam Dalton, Realtor - Turlock Homes (Century 21 M&M and Associates - Turlock Real Estate) almost 13 years ago

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