pay the $2k
ask the 2 agents to each pay $1000
say no and ask the two lenders to work it out
Saying no could work and I would start there but it just drags out the whole thing, but if time is not important you might try it. Banks kick and scream like spoiled brats, but sometimes after they do they get down to working it out.
Various ways to address
Just consider --- is this the house you really want; are you comfortable and convinced that you're getting a very good value at the price you're buying; would you have offered the difference of $2,000 more in sales price to make sure that you get the property?
Will refusing to contribute $2K cost you the sale? Will it cost you more if you walk away from this sale in terms of finding (and waiting) for something you like better and may cost more
You can contribute the $2K
Or you, the buyer and both agents can split the difference 4-ways to make is easier on everyone's pocket. If the buyer can't and doesn't have the money, then maybe you and the agents can split it 3 ways.
But I don't think it's fair to ask the agents to pay for all of it. Listing agents work so many hours on short sales that if one were to factor in the hourly wage based on how much they earn by the time the sale closes, it may shock you.
When this happend to me and I was the listing agent we wrote an addendum that stated how much the offer was with x amount to be paid to chase for the the second. The bank approved it. If you are planning to just go ahead and pay the 2000.00 you could just add it into your closing costs and bring it with your down payment check that you bring to closing. You should have your agent try to negotiate it with the bank first though. Also as stated below you could try to get the listing agent and your agent to pay for some of it.....Dawn
PS: and yes it would be cash up front out of pocket not put into the loan.
If you are in a binding contract with the seller you have a right to keep countering the banks until you have exhausted all avenues. Most agents just want to close the deal but proper channels need to take place.
Even if you agreed to pay the second you have to make sure the first will allow it. I will tell you this sort of thing happens all the time though.
Yes, this is becoming more and more commonplace nowadays with bank owned properties. The buyer can do this, but they cannot pay for past due taxes.
Ideally, if you can and the value will hold, you can add the difference to the purchase price and base the loan off of that. This only works if the appraised value will hold those additional funds. With only $2k as the difference, you should be okay.
I am still waiting to hear from my agent and my lender, in the mean time I was trying to educate myself to better understand what my options are
Just for clarification, this 2k would be reflected in the offer, not actually Cash out of my pocket, correct?
If that is the case then raising our offer becomes irrelevant if the home does not appraise for the amount we offered, correct?
Its probably also worth mentioning that we do not expect it to appraise for what we offered, since the offer was placed values have come down.