Crunk Times, My friend.....Crunk Times

[WhoSayWho? 5,000+ posts]

Sometimes the purchase price is actually raised so that the seller can pay more closing costs.

If the seller is a developer he will be more inclined to agree to pay more costs and keep the price higher. Costs do not show up when a realtor runs comps -- lower purchase prices do.

 

[WhoSayWho? 5,000+ posts]

It won't load for me. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

It is of a chimp practicing karate.

There is also one of a monkey fVcking with two tiger cubs that is funny.

I found them while showing my kids the dog tail pulling monkey vid.

 

[Chevillac 5,000+ posts]

mjpopcorn.gif

 

[IamDeMan 5,000+ posts]

LOL.
You put in a bid you and can negotiate. You have to start somewhere. You lowball your offer, make them pay closing costs, they either take the offer or dont. I cant answer where the negotiations are going to go, its pretty much up to the seller. :shrugs:

They will only go so low I guess is the answer to your question. You find out bottom dollar. Than make them pay closing costs.

I guess if you dont get it, you dont get it. :shrugs:

I get what he is aksing you aren't
Take what you said there "Than make them pay closing costs." He doesn't understand why someone wouldn't want to just lower the cost again by as much as the closing costs are instead of paying them and vice versa, why the buyer would want the to pay the costs instead of an even lower price.

I can't answer his question of why, but I at least know what the fuck he is asking.

You keep stating the same thing as if we don't know the process of negotiating a home. I, and I assume he does too, understand the different ways to negotiate. It's the benefits of choosing to go one way over the other that escapes him and in this specific scenario, escapes me too.

 

[IamDeMan 5,000+ posts]

I need to find me a nice 2 story like this one.

Swanky

Sometimes the purchase price is actually raised so that the seller can pay more closing costs.
If the seller is a developer he will be more inclined to agree to pay more costs and keep the price higher. Costs do not show up when a realtor runs comps -- lower purchase prices do.

Now that is an answer to his question. Thank you WSW.
I have a suspicion it isn't the only advantage or reasoning, but it was nonetheless an answer to the actual question.

 

[IamDeMan 5,000+ posts]

mjpopcorn.gif

No GIF for joo

 

[mokedaddy 5,000+ posts]

I get what he is aksing you aren't
Take what you said there "Than make them pay closing costs." He doesn't understand why someone wouldn't want to just lower the cost again by as much as the closing costs are instead of paying them and vice versa, why the buyer would want the to pay the costs instead of an even lower price.

I can't answer his question of why, but I at least know what the fuck he is asking.

You keep stating the same thing as if we don't know the process of negotiating a home. I, and I assume he does too, understand the different ways to negotiate. It's the benefits of choosing to go one way over the other that escapes him and in this specific scenario, escapes me too.

I know what he is asking. He said he didnt have enough for the down payment. Makes the answer pretty simple doesnt it?

First you negotiate bottom dollar. Them you tell them to pay closing costs. A smart seller is not going to turn down a house purchase over a couple of thousand. You get the best of both worlds.

As far as its a house you really want, and they wont come down but can pay the full down payment and the closing costs than of course you wouldnt roll them into the mortgage.

make sense yet?

 

[mokedaddy 5,000+ posts]

I understand now from the seller and real estate's agent's perspective why they would want the price to be higher, even if they are refunding some of it later by paying for closing costs.

But as a buyer, wouldn't I want that cut off the front end...the lower the selling price, the better suited I am to buy the house based on the 90% of appraised value. I guess my situation is very specific.

Buying a house is always very specific. And that is why it all depends on the house you want and what the seller is willing to do.

I dont see you buying from a developer since they are often in demand and inflated. Most are actually sold as lots then the house is put on.

But from a private buyers perspective, like I said it all depends on the seller and how desperate they want to get rid of the property vs. how bad you want the property. And only you can answer those questions.

 

[IamDeMan 5,000+ posts]

I understand now from the seller and real estate's agent's perspective why they would want the price to be higher, even if they are refunding some of it later by paying for closing costs.

But as a buyer, wouldn't I want that cut off the front end...the lower the selling price, the better suited I am to buy the house based on the 90% of appraised value. I guess my situation is very specific.

It seems that way. If it was bought for investment purposes you wouldn't want to add to decreasing values in the neighborhood. As a long term dwelling and looking to save on the loan then you are looking for opposite. Thats why give and take is necessary I imagine, which is why it ends in a little of both most times.

 

[IamDeMan 5,000+ posts]

I know what he is asking. He said he didnt have enough for the down payment. Makes the answer pretty simple doesnt it?
First you negotiate bottom dollar. Them you tell them to pay closing costs. A smart seller is not going to turn down a house purchase over a couple of thousand. You get the best of both worlds.

As far as its a house you really want, and they wont come down but can pay the full down payment and the closing costs than of course you wouldnt roll them into the mortgage.

make sense yet?

He isn't asking the how though. He wants the why. You keep giving the how. WE GET IT!
Flip isn't one to just do it because some know it all said to. He wants to realize the why first.

 

[mokedaddy 5,000+ posts]

I get what you are saying now....you consider it a two step process, whereas I am trying to get it all done in one.
I guess this is a "real-world" negotiating....or how it all works or whatever.

I guess I am too simple.

yeah its not real simple. Buying a house is pretty involved unless you just jump into the first thing you see. But they dont teach a lot of this so people often get screwed not knowing what they want or what they are getting into.

 

[mokedaddy 5,000+ posts]

He isn't asking the how though. He wants the why. You keep giving the how. WE GET IT!
Flip isn't one to just do it because some know it all said to. He wants to realize the why first.

And like I said in that post. If you can afford the down payment and the closing costs there is no reason.

Its only if you cant afford the down payment but can afford closing costs like he said.

 

[mokedaddy 5,000+ posts]

I think we continue to miss each other in discussion. I am thinking either I am not framing the question correctly, or there is more to it.

If you can afford the down payment and the closing costs than you are better off not rolling them into the mortgage and lowering the price as stated (worse case scenario as like I said you can negotiate the price than the costs).

If you cant afford the down payment as stated and have money set aside for closing costs, it would be in your best interest to put that all in the down payment and have a little higher mortgage.

Sorry I am trying to explain it well enough.

So yes you are correct that it is better to lower the price of the house and pay costs unless you cant afford both.

 

[mokedaddy 5,000+ posts]

This....hopefully this is clear.

Knock the 3k off the house is better IF you can afford both. That is correct.

Unless you feel you can make more money investing than what you are paying in interest, but you stated that was not for you.