Home Selling in Riverhead>Question Details

Dkarp3030, Home Buyer in Wading River, NY

Is it common for a buyer to put down only 1% on contract and expect the seller to hold the house until they want to close in 4 or more months?

Asked by Dkarp3030, Wading River, NY Sun Dec 12, 2010

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The common practice in this area is to place a minimum of 10% down on contract. The purpose of these agreement is to place some "financial skin" into the agreement with the buyers. You are agreeing to sell the house under the timeframe and terms established in the contract and remove the house from other potential buyers during this contract. If the buyers should back out of the contract the monies are to be placed with the sellers. This is the risk the buyers place on the agreement to purchase to balance the risk the buyers do not back out of the contract. If the buyers would place 1% down on the contract the risk burden is very limited for them and you loose all of the potential buyers during this time. I would speak with your attorney and they will be able to advise you on the terms of this offer.
1 vote Thank Flag Link Sun Dec 12, 2010
No, unfortunately not common at all--in this area it's generally 10% down at contract, unless working with an FHA loan--what is your agent advising....
1 vote Thank Flag Link Sun Dec 12, 2010
Not it is not common. The only time you see very low amounts (3.5-4%ish) is when it is an FHA loan. I would speak with your lender, agent and attorney. I would be shocked if the sellers agent or attorney would let this go through.

Nicholas Campasano
Licensed Real Estate Salesperson
Century 21 AA Realty
E: NickC@Century21aa.com
C: 631-848-6515
O: 631-226-5995 x206
http://www.NicholasCampasano.com
0 votes Thank Flag Link Fri Feb 13, 2015
The amount that is put down at the signing of the contract depends on what type of mortgage the buyer is obtaining. In my opinion, I do not see how it is beneficial to the seller for waiting 4+ months to close and I don't believe the seller's attorney would allow this. This seems like too much a risk for the seller, unless there are unique circumstances.
0 votes Thank Flag Link Sun Jan 11, 2015
I suggest you connect with a very reputable lender and way all your options on how to finance the purchase of a property in your size and price range.... It is hard to tell you what a seller will accept, but for a lender it is relatively easy to explore all your options available based on your income, financial situation etc.

I never ever recommend to any of my buyers not to contact a lender first, get detailed information, about what options and various mortgage types they may have, and then get a written pre-approval letter from that lender, before even looking at properties.... Get the financials straightened out first, then start looking for the property that fits both your financial capability and your needs...

Good Luck to you!
Edith YourRealtor4Life and Chicago/ Northern Illinois Connection
Working always in the very BEST interest of her clients
EdithSellsHomes@gmail.com
0 votes Thank Flag Link Mon Dec 13, 2010
Not at all common, unless it is new un finished construction or there are not much sales in the neighborhood.

It would not be too bright on the part of the seller to take the home of the market for four or more months
With a commitment of only one percent.

You can always try, who knows you may just find one such seller.

Good luck.
Perry
0 votes Thank Flag Link Sun Dec 12, 2010
Does not sound to good for the seller.
0 votes Thank Flag Link Sun Dec 12, 2010
It certainly isn't normal in my area, but you can't blame someone for asking for this...all you can do is say no. I would probably say just that.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Sun Dec 12, 2010
No it is not common and not a good move for the seller.
0 votes Thank Flag Link Sun Dec 12, 2010
If I was the listing agent I would advise my seller to pass on that offer unless it was $20,000 over list price (or something like that). Why would an owner take a house off the market for 4 months with the possibility of selling in 4 months and only get 1% as earnest money in case the buyer up and walked away? I would tell my seller don't do it based on just the little information you have given us.
0 votes Thank Flag Link Sun Dec 12, 2010
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