Home Buying in 75253>Question Details

Pesco, Home Buyer in 75253

I love a house that is almost worth 100k. Would the seller go any lower if we have almost half of that for the down payment?

Asked by Pesco, 75253 Wed Jan 19, 2011

Help the community by answering this question:


Yes, but not much.

A large earnest money deposit will convince the seller you're serious and will make it more likely that you can get a loan for the remainder.

But ask yourself if someone offered you $4,000 for a car you had listed for $5,000, would it make a huge difference to you if they offered you a $50 deposit or a $2,000 deposit? Probably not, but if the remaining balance to pick up the car is big and he is not losing much of a deposit, you won't feel as confident that he'll be back to give you the rest. Also, you wouldn't change your price much would you?

In either case it's the closing (finally paying the full amount) that makes the seller happy.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Thu Jan 20, 2011
A seller will not benefit from you putting half down or one third or only 3.5% provided the loan gets approved. Once your loan is approved, they get 100% of what is left after paying off their mortgage and costs. Half down means your financing is fairly secure, so the risk of accepting your deal is less than another buyer with less down, but it doesn't translate into more money.
Daneen is correct though, make an offer. In today’s market a buyer with strong down payment will be taken very seriously. You have nothing to lose for trying. Have your agent research the home and the area and assist you in preparing a good offer. Best of luck.
1 vote Thank Flag Link Wed Jan 19, 2011
Every transaction is different. Try and find out the back story as it makes a difference. Best way to find out? Speak with a local agent or Realtor and make an offer. Best of luck, on one can tell you what the sellers could or would do with 100% accuracy.

0 votes Thank Flag Link Thu Feb 24, 2011
I don't think it makes a difference if you put 50% down or not. The seller is still not getting asking price (assuming from your question that you want to make a low ball offer).
If I want $120,000 for my home and you offer me $80,000, it doesn't make the deal any sweater that you are able to put $40,000 down. I still won't get $120,000 and there's no benefit to me.
As we tell all buyers wondering if the seller will take their offer: "You're never going to find out unless you try!"
Like someone has already suggested, put it in writing. Seeing that number on a piece of paper has a lot more power than just hearing it.
0 votes Thank Flag Link Thu Feb 24, 2011
Possibly, but it may depend on the seller's motivation, as well as the rest of the terms of the contract. Unless you put the offer in writing, it is a moot point. I have found that sellers often agree to a price in writing, that they have verbally said they would not accept.
0 votes Thank Flag Link Thu Feb 24, 2011
Dear Home buyer:
in a seller's mind this is irrelevant, unless he is distressed to sell and in a hurry and you are paying all by Cash.
But hey everything is negotiable, you may try that line, it might work, because it might show your sincerity....
Ramona Mahboob, ReMax Results, Broker Associate, MN, 952-239-1697,mah0002@gmail.com
0 votes Thank Flag Link Wed Jan 26, 2011
Hi Pesco,

Whether you put the minimum down payment or 50% down payment, it is irrelevant to the seller unless of course to you pay everything in cash. Paying in cash reduces the time to close the deal. Other than that, if you can qualify for a loan, I would definitely go that route because you can keep some of your assets liquid.

At the end of the day, the only thing seller cares about is the money he/she will get that closing. If he is desperate to sell, then he/she might even go lower.

If you need help with the financing, let us know at http://www.mylendingplace.com

We offer flat $500 lender fee with the market rate and no points.
0 votes Thank Flag Link Wed Jan 26, 2011
Hi there!

I think it's important that you seperate your down payment from whether or not the sellers would reduce the price.

If you are appoved for the financing for the home, the home is a fit for your needs and preferences, I recommend that you would work with a Realtor and make an offer based on the selling prices of similiar homes sold in the area.

If the home is not in your price range for you to obtain financing, you may need to adjust your search for a home that you do qualify for.

Check into an FHA loan with your lender.

Good Luck!
0 votes Thank Flag Link Wed Jan 26, 2011
I like Lynn911's answer. She is right! - "No professional can speak on the behalf of any seller."
As far as your down payment goes, unless you plan to live in that house for the next 30 yrs, I'm not sure why you would put so much of your liquid funds into your down payment. In Dallas, the average length people live in a property is about 4-5 years.

As an alternative, there are many secure-investment opportunities in Dallas you may want to consider.

JRMolina.com | Dallas Real Estate Investor | Texas Loan Officer | Texas Credit Specialist
Taylor Realty Associates, LLC | Luxor Investments

Web Reference: http://www.tv.jrmolina.com
0 votes Thank Flag Link Mon Jan 24, 2011
It doesn't hurt to submit a contract for a lower amount with your letter of being able to buy(credit worthiness) but you need to keep an ace up your sleeve. In other words telling them everything wont necessarily be in your favor since the seller only wants to know you can get a mortgage to pay for the house. It is expected that you would have enough funds for a down payment and closing costs. If you have any other questions about this please contact me and we can discuss strategy..
0 votes Thank Flag Link Thu Jan 20, 2011
As has been stated we really can't answer this question. It is hard to define what you are asking. Were you looking for seller financing? In the end the seller of the home would not care of the down payment because they would get the rest of the money from your financing.

If you are asking about an owner finance option additional funds may help entice the seller but the only way to know that is to make an offer. I would speak with a local Realtor to make sure you are represented and discuss the transaction in detail so you can decide which is the best way to proceed.

Don Groff
REALTOR | Mortgage Broker
Keller Williams Realty | 360 Lending Group
0 votes Thank Flag Link Thu Jan 20, 2011
Hello Pesco,
As most of the answers stated, no one knows what the seller will accept. The larger the down payment,makes you a stronger buyer, with the ability to purchase the home. The money the seller receives is the same amount if you pay cash or if you put down a minimum downpayment. If there are multiple offers, you may have first consideraton, depending upon the remaining terms or conditions you offer. If you have to sell your home before you can close the transaction, your contract may be rejected. The terms of the contract usuallly have more weight than the amount of money you put down to secure your loan.
Please call if you have any questions. Good luck.

Rosalyn Traylor
RE/MAX Premier Group
0 votes Thank Flag Link Thu Jan 20, 2011
There is no one (and I mean no one) on this blog that can answer this question with a definitive response. The only person that can answer this question would be the Seller and the only way to get that answer is to contact an agent to represent your best interest, get pre-approved for a mortgage and write your highest and best offer to submit to the Seller. Yes a larger down payment does look great, but bottom line is final price the seller receives for the property. I hope this helps you and good luck!!

Mila Lewis, Realtor
Fathom Realty
214.517.2570 cell

Disclaimer: I am not licensed to provide legal advice. The above representation is based off of my own experiences and may differ from others.
0 votes Thank Flag Link Thu Jan 20, 2011
They should go lower than asking price. How much? we dont know until we do some reaserch on the property before making an offer. I agree with allot of the answers. If you are putting down half it shows you are a strong buyer. If there is multiple offers on the property somone putting down that much cash looks better on paper than
somone putting down the min. If you need help hammering down the price feel free to touch base with me
I am always available.
Brent King
Re/Max Preston hollow
0 votes Thank Flag Link Thu Jan 20, 2011

You might be better off holding on to your cash and taking advantage of mortgage rates that you can more than recover the cost of by investing your cash in any number of investment options.

I say this because:
A) The answer to your question of will sellers drop the price if you put more down is "NO" 96 times out of 100. Reason being that sellers generally get paid in cash from banks the buyers secure mortgages through and your offer to pay more cash down still puts the Seller in a position they never had to or rarely ever wished to consider to begin with: Financing You, and

B) It's a better business move to do as I suggested above: Secure a mortgage to buy the house, use your cash you got to keep to generate secure returns that functionally pay off the interest of the mortgage and may actually even put a little bit more cash in your pocket than you had to begin with!

Hope this answers your question!

Saman Baghestani

PS I am not licensed to provide legal or financial consultative advice. The above representations are based out of my experiences and yours may differ.
by putting the money you otherwise would have put as a down towards
0 votes Thank Flag Link Thu Jan 20, 2011
You'll never know what a seller is willing to accept until you make an offer. The seller would then have 3 options: to accept, counter, or reject your offer. Keep in mind that you could also make an offer at a lower price without offering to put as much down.
0 votes Thank Flag Link Thu Jan 20, 2011
No professional can speak on the behalf of anyone . You need to qualify for a mortgage in order to submit a sales offer your buyers agent can assist you with all real estate paperwork

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Thu Jan 20, 2011
You definitely have to submit an offer. Half down may help them feel more confident in your offer. I would be happy to show you the property tomorrow and discuss an offer. As an added bonus I rebate 20% of my commission to all my buyers.

0 votes Thank Flag Link Wed Jan 19, 2011
I will be to help you compare properties and negotiate for the best price on the home in dallas.

A good deposit is always great!
Web Reference: http://justinhenryhomes.com
0 votes Thank Flag Link Wed Jan 19, 2011
Having 50k as a down payment does show that you are a stronger buyer than someone who has less money to put down. Most times this won't really cause the seller to accept less, however if there is more than one offer in on the home, this WILL put you in a spot to have a better shot of having your offer accepted. So it is a good thing, but will probably not have the result you are looking for.
0 votes Thank Flag Link Wed Jan 19, 2011
The best way to find out a sellers motivation is to contact a real estate agent and write an offer on the home stating that you will be putting down quit a bit of cash. Having more cash to put down will definitely make it easier for lending and less expensive. Dont hesitate to contact me if you have any other questions.

Thank you

Daneen Jacquot, Broker/owner
South Dakota Real Estate Company
1211 Mount Rushmore Rd
Rapid City SD 57701
0 votes Thank Flag Link Wed Jan 19, 2011
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