received a bid for 172,000 but they want $8,000 credit. Does anyone know what this means? Our realtor sounded un happy with the 8,000 part.
2007-02-20 05:01:53 · 6 answers · asked by Charity D 2 in Business & Finance ➔ Renting & Real Estate
It simply means they are asking you to sell the home for $8000 less than you have it listed for, as well as you give them an $8000 seller contribution towards closing. They essentially are looking for $16,000. Hardly what I would call a good offer. Tell them that if they want $8000 in concessions, they pay full list. Remember, you will still have other expenses that will eat at your bottom line (realtor commission, transfer tax, recordation tax)
2007-02-20 05:11:36 · answer #1 · answered by Gary N 2 · 0⤊ 0⤋
You have to ask your broker exactly what is being offered. It could be that the buyer wants you to float $8000 credit towards the purchase. In other words, if you accepted, you would sell the home for $172,000, they would apply for a mortgage for $164,000 and on paper the price of the home would be $172,000 thus making it look like they put $8000 down. The catch is that YOU will take out a note with the buyer for the $8000, and they will essentially pay you and the mortgage company each month. The problem is this. The mortgage company will place a first lein on the home, and even though you can place your own lein on the property, if the buyer bugs out and the first mortgage company sells the property for $160,000 and they take that as payment in full there is nothing left for you and you loose. You also cannot use that $8000 if your planning on putting it towards a new home or other expense as you in essense lent that money and will not have it on hand as cash. No offer is written in stone, so you can say NO. If the house has been on the market for a while and your hot to get rid of it without loosing your socks, you can either take the chance and take the lower offer and say NO to the credit, or refuse the contract offer all together. What your buyers may be able to do is say that the price of the house was $179,900 and offer you 172,000. The difference will be their down payment which is on paper only, but the lender does not know that. To the lender all they need to see is a contract that says that the house was $179,900 and they need a loan for $172,000, showing a difference of $7,900 which is assumed would be their down payment or part of it.
2007-02-20 13:18:39 · answer #2 · answered by Dave 5 · 0⤊ 0⤋
It can mean several things, but in all likelyhood that means that they get to apply $8, 000 of the sale price to whatever they want the credit for. (So the real sale price is $164,000) but you will likely pay comission, taxes, etc.. on $172,000.
Think hard... if your house has just been listed you may want to wait a bit. Or you can counter with NO credit at that price.
2007-02-20 13:11:26 · answer #3 · answered by ca_surveyor 7 · 1⤊ 0⤋
Credit for what I would ask. eight K is allot of money and you may/should ask your agent what they want. Actually he should have given you the answer already. Even with 3% contribution toward closing costs this does not compute. Your agent certainly has the answers- he knows what the 8k is for.
2007-02-20 15:53:57 · answer #4 · answered by sylviavnpttn 5 · 0⤊ 0⤋
Not sure but does not sound good keep it up on the market untill you get ernest money
2007-02-20 13:07:36 · answer #5 · answered by ready 2 · 0⤊ 0⤋
why don't you just talk to your realtor?
you are paying him/het lots of money and yet you expect answer form 2 pointers here
2007-02-20 13:10:42 · answer #6 · answered by sm bn 6 · 0⤊ 1⤋