I agree with many of the facts layed out before. Yes you can help with closing costs but, before all else just have a number in your mind that you have to have. If you have that then start your negotiating. Secondly Keith is right never give any negotiating power away. If you say you really need to sell you are telling them that you will deal. The waiting part on the other side is to make you sweat. I will admit I have done the same thing. Just don't give away the bank. You could look at your listing and offer a home warranty. That does not require any money up front and for approx. $500 you home is covered even while it is for sale. The funds are paid at closing. These are little things that can be used at the negotiating table. If they offer too low then you take away the warranty. Same thing with your buyer if he is too low take away a refrigerator (if you were leaving it) these are all chips to use in negotiating. Speak with your agent and ask them what is there feeling from the other agent.
Coldwell Banker Triad
I don't have the all the details, but here is what I suggest from your post:
1. Do not tell anyone you need to sell quickly (never, ever, never. It hurts your bargaining position- okay, your Realtor is all right)
2. Homes that sell in the first 30 days sell closest to asking price. If you have an offer from a qualified buyer, then I would work with it. I assume you have a listing agent, their job is make sure this buyer is willing and able to perform.
3. "Dragging his feet" means that his buyer's agent and your Realtor are negotiating, right? So if this is dragging on, then it seems (just from your statements) that YOU need to be flexible if you want to get your home sold.
The key is not to waste time on buyers that are not qualified. Your Realtor's job is to make sure that IF you do all he asks, that escrow will close. If this is an FHA loan, there are limits to what you can do, however your Realtor should be advising you.
90% of the time the buyer that purchases your home first sees it with a Realtor. That means that if your home is NOT being shown, the price is too high. In a buyer's market, the buyer's set the price. Not you, not me, not how much you owe, etc. In a buyer's market the homes that sell are the homes that buyer's and their Realtors think offer the most value. Value can mean price, however in your price point and area it sounds like it also means helping the buyer with closing costs, buying down the interest rate, and generally leaning over backwards to help them.
Based on your post I say make it work...as long as the buyer is QUALIFIED. If I were your agent you'd have lowered your price four weeks ago. If this purchase falls through, plan on a 3-5% price reduction.
If your buyer has great credit and is qualified, and willing to buy, work with him! Just be careful about the downpayment rules.
Good Luck on your sale!
The seller can only pay a maximum of 3% closing costs unless it is an FHA loan in which case you can pay up to 6%. In this market sellers and realtors are having to get more creative to get homes sold. I have seen sellers buying down the points for the buyer to get their monthly payment down. Speak to the buyers lender and see what you can do to help.
I would (your Realtor) make sure it is okay with the lender for you to actually give down payment assistance. If the buyer absolutely has no funds of his own, his credit score may also be a question. I think the first step would be to see if he has a letter of credit pre-approval, that outlines the terms of his loan. If you want to sell quickly, realize the market is not as strong as we have seen most springs, and it is not uncommon to give concessions now. Closing costs or price reductions are more common than the down payment assistance, just because loan programs have much tougher guidelines. There are a few programs that may still allow this, but wait for his offer in writing and verify the terms and conditions of the financing with the lender. If you need to sell quickly, you may have to be a little more flexible than in the past!
Thanks for the great response. We are offering a full warranty and leaving all appliances. The other issue with the buyer is that he does not have nor does he want to acquire an agent, so we are in the position of dealing directly with him. I think your right about figuring out a price that we absolutely have to have, we actually did that last night. Now that we know that I feel more confident in dealing with the buyer.
anything you say can and will be held against you
if you can not afford a realtor, one will not be appointed for you
on the plus side
Charlotte was the only metro place
in the Case/Shiller index report that had a price increase (1.8%)
The 2 story house is 1440+ square feet with a one car garage. The house has an ample size back yard and stainless steel appliances. Some of the lighting fixtures have been upgraded. House includes a laundry room, kitchen pantry, kitchen island, and downstairs fireplace. Wall to wall like new carpeting. Vaulted ceilings in master bedroom.
Thanks for you advice. We did recieve from the potential buyer a copy of the pre-approval letter. He was indeed approved for the loan and my realtor recieved a good faith letter from the bank. His credit appears to be excellant and the bank is requiring 5% downpayment. We were considering lowering the price of the house and helping with closing cost. Which is usally a couple of thousand right?