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Negotiator, Home Buyer in GA, NY, NC, FL

Cash sale buyer. What are my advantages? How do I negotiate. Examples please. I have $100,000 cash to

Asked by Negotiator, GA, NY, NC, FL Thu Aug 21, 2008

spend what would be the highest price I could afford when negotiating?

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Your advantage is that you could obviously close - no issue with finding money - for an inexpensive property. You will have to set aside some funds for your closing costs, which vary by state and sometimes by county. Assume that's $4000. You may want to set some aside for immediate use after you buy - for decorating or landscaping or whatever. Assume that's $5000. If you want NO mortgage, Max price = $91000 ($100000 - $4000 - $5000).
If you want to use most of your money as a down payment and get a mortgage for the rest, your closing costs will be higher, because you will have mortgage application and associated fees. Assume closing costs are $6000, and you still want $5000 for misc. expenses. Then you have a downpayment of $89000, Assuming your credit is good, you could use your $100,000 to buy something worth up to about $450000 and still get a conventional mortgage (with no PMI required). A mortgagte broker would be able to give you a more refined estimate, and a local Buyer Agent could walk you through typical closing costs in your preferred area. The numbers I used are just examples, and could vary a lot.
0 votes Thank Flag Link Thu Aug 21, 2008
Your advantage is that you'll get a better interest rate with a bank if you take out a mortgage besides using your 100K, but that depends on the price for the house you're looking at.. What you can afford beyond 100K is dependent on current income, liabilities per month and credit score.

Your question is a little vague...what prices are you looking at, etc.? I could give better advice, but need to know more about what you're look into buying and costs, etc. etc.
0 votes Thank Flag Link Thu Aug 21, 2008
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