I think the seller should have snatched that offer up quickly... Some seller's are just way to greedy for their own good... When 2-3 months down the road comes along and his house is still sitting he will realize how he messed up....

Joey,

One piece of caution. A lot of lenders are toughening on purchase scenarios where the contract price with concessions is higher than the original list price in MLS. I know with our company that would be a deal-killer.

When the homeowner realizes what he has done in a couple of months (unless the house is a great deal, then it will sell fast), he will ask his real estate agent to call you and if your buyer is still interested, I'd tell him to offer a much lower price. I can't believe the guy would kill the deal for $4500. You guys gave him a great offer.

Yeah, when I went to the co-op's office to pick up the check, he told me that maybe his seller will reconsider soon and that he will call me.

And like Ken(TX) said, maybe the over bid could have helped kill it. I dont think the home is a bargain. I dont think it will appraise for much more than what we offered either. Asking for so much back for seller assist probably doesnt help either.

I did tell my buyers if the seller reconsiders, we will offer less.

I would have also told the other agent that your buyer is not going to wait around while this seller tries to be greedy. Your buyer has to buy a home, not wait for others to cooperate at their expense. Ask the other agent if the seller wants you to re-submit an offer right now being that the first rejection was just plain stupid. Now or never! If they want you to wait, then a lower offer later will work too. Of course I would also make the offer lower than the original the second time around.

Not to be nitpicky, but the seller would have received only $163,402, not $165,000. $174,500 - 6% = 164,030. Additonal commission because sales price is $174,500 and not $164,030 = 638 (assuming 6% commission). $164,030 - 628 = $163,402. That's 93.6% of list price.

I don't know what the market is in your area, but around here very few sellers will accept 93.6% after only 2 days.

In addition, lots of deals with 100% financing fall through before closing. The seller is probably hoping to get an offer at least this good from a buyer with some down payment.

I think deu12000's approach is definitely the best. Don't include the 6% in your initial offer but make it part of a counteroffer. The seller could then agree to the increase and the 6% and might ask that the commission be based on the net after the 6%.

I just don't know if we could get it to work. The buyers dont have money to put down. They have a max of $2,000 they can do earnest money. After that, they will need help with all the closing costs. And like some of you said, close to 6% sellers assist and 100% financing would be a deal killer. I just dont see any ways of helping them.
I could call the listing agent to ask if his seller would reconsider (it has been 2 weeks), but at this point I just don't know if we can put a deal together that won't fall through.

Under my OneFeePlus program we have up to 2% to contribute to the buyers closing costs. They ultimately pay for it via a higher rate as we use the resulting yield spread premium to make the contribution but better the buyer pay it than your seller.

Thanks
Danny

My buyers dont want to pay a higher interest rate...it is already high enough.
They re holding off on buying.....baby is due any time now.

You are absolutely correct, but because I start off my quotes at the lenders "PAR" rate the rate quoted with the "rebate" built in is similar to other lenders rates, ultimately the customer pays the same rates but gets the added bonus of a rebate....win win

Danny

The best thing to do is talk to your real estate broker and loan consultant for more information on 100% financing.

Visit my website if you need any real estate assistance and/or to Find A Real Estate Agent.

Sincerely,

Fernando Spindola
Real Estate Agent
CA License #: 01745219

ERA American Dream Realty
8211 E. Firestone Blvd.
Downey, CA 90280

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