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.
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 todayâ€™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.
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.
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,firstname.lastname@example.org
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.
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.
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
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.
REALTOR | Mortgage Broker
Keller Williams Realty | 360 Lending Group
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.
RE/MAX Premier Group
Mila Lewis, Realtor
Disclaimer: I am not licensed to provide legal advice. The above representation is based off of my own experiences and may differ from others.
somone putting down the min. If you need help hammering down the price feel free to touch base with me
I am always available.
Re/Max Preston hollow
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!
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
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Daneen Jacquot, Broker/owner
South Dakota Real Estate Company
1211 Mount Rushmore Rd
Rapid City SD 57701