First-Time Home Buyer! Need help fast!!!?
Posted by | Posted in Buy My Home Fast - Questions & Answers | Posted on 21-04-2010-05-2008
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My wife and I are getting ready to make our first offer on a home. Here’s the info on it.
We are pre-approved for a loan amount of $350,000. The home we like is a short-sale and the bank has already approved the short-sale. They are asking $240,000 and compared to the other homes in our area we believe it is worth $290,000 to us. We really want the home and don’t want to lose our chance so we are going to offer $275,000 and the bank pays the closing costs. We are trying to do anything we can to avoide paying the closing costs ourselves because we might have a hard time coming up with it. However, we are willing to offer $35,000 on top of their asking price. Well actually, think of it more as $25,000 more because if the bank does pay the closing costs then we are really only giving them $25,000 more and not $35,000 more.
Do you think we will have a great chance to get it at an offer of $275,000 and they pay closing OR do you think we need to offer $275,000 and NOT ask for closing?
Our agent says we might not get a chance to submit a backup offer because this home already has multiple bids and that the banks are taking the first best offer these days (in our area of Fullerton, CA).
Please help because I am making the offer today at 3pm.
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Tough call. Depends on how many bids are on the table. $35k over asking price on a short sale is rather steep. IMO, put in a bid for the asking price. If it is meant to be in that house it will happen. If not, there are plenty of homes on the market, especially with the crisis we are in. I am looking at homes today for myself and girlfriend, and we have a policy that the right home will come. Paying over asking price with this housing market is just ridiculous to us. Best of luck with the home search.
if the house has multiple bids on it, yes ask more than what they want if u want them to pay closing costs.
you are going to pay more than their asking price?, my advice to you is to look on the COUNTY AUDITOR website for whatever county this home is in, obviously you want to look in the real estate section of the auditor’s website , it will tell you want the bank took the house back for and the yearly property tax, plus your realtor could be full of b.s. about a 50% chance of that, when you make your offer be careful that is not any back property tax and/or back utillities as well , there will be no way for you to know that so all you do is when you submit your offer, say seller is responsible for all closing cost, back property taxes,back utillities, and offer is subject to home inspection. and whatever else you want them to do. good luck to you, and if you don’t get the house in these times you’ll be able to get another one very easy.
This is a case where you must trust the advice of the agent you have chosen to represent you. Only that agent has all of the information from the market place you are in plus has contact with the listing agent representing the subject property to get a feel for what it will take for you to get the property.
They have priced the property aggressively to attract multiple offers and in that situation, sometimes asking for credits may weaken your position.
The most important thing is for you not to make any offer you cannot close on because having the down payment and closing costs are not a contingency in a CA purchase contract and you would lose your deposit if you cannot close because of a lack of funds.
Keep in mind you will get a $8000 credit on your 2009 tax return for a purchase made this year, so perhaps you could get an advance from parents or someone for closing costs with the agreement to pay them back from your tax return next year if need be.
Good luck!
DO NOT offer more than their asking price. That is lunacy. If they are asking $240,000 and you think its worth $290,000 then smile and make their full offer at $240,000. We bought a little bungalow for a rental investment at christmas. They were asking $78,000 and we offered $60,000. They ummed and ahhed for a bit [about 5 days] then accepted our offer. It doesn’t hurt to be cheeky but I can’t see the sense in going over someones asking price.
don’t get too emotional and get your judgment blurred. i understand you like the property, but don’t pay over the asking price if you can afford not too. it really is a buyers market now.
there always would be another around the corner, if this one doesn’t go through.
if you must $250k max.
best of luck.
I would never offer more than the asking price of a property. The bank has said they will accept $240,000 for the property and now you want to offer $275,000.
Your agent is not giving you good advice at all. This person is simply looking to make sure the sale go through at you spending more than you should. How do your agent know that the bank have multiple offers? The bank does not disclose to real estate agents any offers they have on a bank owned property nor how much the offers are for.
I would offer the bank the asking price to include that they pay all closing cost and then ask for the right of first refusal in the offer.
If the bank has agreed to a short sale of $240,000 then they have decided that this is a price they can live with.
I hope this has been of some use to you, good luck
“FIGHT ON”
If you really want this house, then do your homework. I hope you are working with someone that gives you great advise ( good real estate agent ) ask how long this property has been on for. You can also ask if there are other offers on the table the bank is considering. Never offer more than the asking price. Always pay your own closing costs. Be ready to wait three months for an answer from bank. BE PATIENT. Short sales always take time