Question removed

Asked by Jennifer Kretschmer, AIA, 95124 Thu Aug 30, 2007

This question was removed by its author.

Answers

16
Aileen-Manha…, , New York, NY
Sat Sep 1, 2007
Great question, Jennifer. When my husband sold his condo, he had multiple offers also. One offer was cash, no contingencies. It was an executive that wanted an easy commute to his employer. The second offer was a single mother with one child. She was selling her home and that was the only contingency - she needed to sell her home first. My husband chose to accept the single mother's offer based on his emotions. In his mind, the executive could find a place anywhere, but as the condo was next two great schools, my husband wanted to help out the single mother.

My point: sometimes it's not about the money. Sometimes it's how the seller feels about the potential buyer. I don't know if this what happened to you, but I'm guessing it might have a little to do with it. The seller was passing his home to someone else. Perhaps he loved it and was hoping the buyer would love it "as is" also. I don't know. Just wanted to give you another viewpoint.
1 vote
Mike Kelly A…, Agent, Santa Rosa, CA
Fri Aug 31, 2007
Jennifer,
If you had multiple offers at the time, yes, they are still happening, you may wish to bring "proof" of your funds. You can do this with a copy of a bank statement, trust account, etc (with all account information numbers blacked out!!) to counter any doubtful thoughts the Seller may have. Also, if you use a CAR form (California Association of Realtors) the form has a clause at the bottom of the 1st page which states you'll show proof of funds. Did you not have a big deposit? Remember, if you're using Liquidated Damages, the most a Seller can claim is 3% of the sales price. If you put down a huge deposit this may also sway a relunctant or doubtful seller.
1 vote
Patti Pereyra, , Chicago, IL
Fri Aug 31, 2007
I have to agree with Jim. People can be easily disturbed by what is considered "outside the norm" and become suspicious.

I have a client now who several years ago - before she was my client - made an offer to purchase a condo in Chicago. The offer was immediately accepted. This freaked out my client and her husband because they thought there was supposed to always be a counter offer; the fact that these people immediately accepted led them to think something HAD to be wrong with the property. So they backed out!

To this day, they still think of that condo and recently asked me to keep an eye on it should it ever go back on the market.

So my tangent answer is, no, you may have not done anything wrong. What is a shame, though, is that there wasn't more communication. You say you 'got the impression' that the seller was uncomfortable. Not to go off an yet another tangent here, but this is where a good Realtor can come into play in representing your interests -- to help communicate back and forth so that you are not just left with second-guessing.

Sorry about the loss of the house sale!
1 vote
Patti Philli…, , Carlsbad, CA
Fri Aug 31, 2007
Jennifer, I've never heard of too much money down! Especially in this market where loans are harder to come by most sellers want to know that the buyers are in a strong position.

Some of the other answers might explain what the reasons were- but it is a bit odd! What did your Realtor have to say about it? You should have had some sort of explanation from him/her.

Good luck in finding the right home.
1 vote
The Hagley G…, Agent, Pleasanton, CA
Thu Aug 30, 2007
Jennifer, were you using a Realtor? If not, the seller may have been uncomfortable selling the home to a buyer not represented by a Realtor.
Web Reference:  http://www.cindihagley.com
1 vote
Richard M. J…, , Sherman Oaks, CA
Thu Oct 25, 2007
Hi Jennifer, the only thing I can think of is the other offer was more $$$. Or its possible the seller liked the buyer better than you.
0 votes
Denise Stuart, Agent, San Jose, CA
Wed Oct 24, 2007
I had a Seller just like this person may have been and when the buyers said they wanted to remodel he just flat out didn't want them in there, you have to remember some people who may have been very attached to the home may be offended. But with my clients It gives me the oppertunity to work that much harder to find something closer to their dream home.
Sorry for your loss on that property and wish you luck for the dream home :-)
Denise Stuart
Coldwell Banker
0 votes
Brian Fortune, , San Jose, CA
Thu Oct 11, 2007
Why were you looking to put so much down? If it was a negotiating tactic fine but there are better investments available to you than tying up cash as equity. Remember, the value of the home will go up, or down, irregardless of your equity stake and that equity earns you nothing while tied up in bricks and mortar.
Web Reference:  http://www.rwwindsor.com
0 votes
Pat Chadwell, Agent, Campbell, CA
Mon Sep 17, 2007
No such things as too much down. I agree that bringing proof of the funds and a strong approval letter is a must. The other offer might have had different terms to yours that were appealing to the seller.
0 votes
Lee Taylor, Agent, Charleston, SC
Sat Sep 1, 2007
No. The other party made him a better offer. He gets cash regardless.
0 votes
Ruthless, , 60558
Fri Aug 31, 2007
Patti: I had a question addressing that fear: http://www.trulia.com/voices/Home_Buying/What_do_you_agents_…

Jennifer:
My question to you would be regarding 1) the Earnest Money and 2) If you didn't have a contingency why would any financing information be on the contract?

Ruth
0 votes
Beth Britten…, , Vallejo, CA
Fri Aug 31, 2007
Hi Jennifer,
I agree with the others that this is hard to analyze. It may be that the manner in which your offer was presented scared the seller. Do you have a fully approved loan for the financed 50% and a good pre-approval letter? Was the seller given an explanation as to why or how you have such a big down payment? It may be that the seller simply didn't believe you had that kind of ready cash--people are, unfortunately, a bit cynical these days. But a large down payment is always a plus.
0 votes
Sylvia Barry,…, Agent, Marin, CA
Thu Aug 30, 2007
Could it be that they are more worried about the no contigency part instead of 50% down payment?

In my company, as a listing agent, if an offer comes in with no contingency at all, we will either have the buyer sign a comprehensive 'as is' addendum, or we actually counter bak, asking the buyers to make the offer contingent at least upon the inspeciton of the house. .

This protects the sellers somewhat in the future when there might be dispute on the property condition.

Now that it's after the fact, I wonder if you (or your agent) can ask the listing agent what really went wrong for you. It's difficult for me (or us) to analyze without knowing all the information leading to the seller's decision.

Sylvi
0 votes
Pam Winterba…, Agent, Danville, VA
Thu Aug 30, 2007
Jennifer.....It is possible he received an all cash offer with a quick close? Those might be favorable terms to a seller. There is nothing wrong with 50% down.
Web Reference:  http://castles2homes.com
0 votes
realpayam.com, , Los Altos, CA
Thu Aug 30, 2007
Jennifer, have you checked for other terms that might be favorable to a particular seller. Besides price, sometimes such things as a move-in time period or length of escrow (short or sometimes extended) might also be a factor. There are numerous reasons why sellers may pick one offer over another but usually a 50% down payment shouldn't scare them.
Web Reference:  http://www.realpayam.com
0 votes
Jim Walker, Agent, Carmichael, CA
Thu Aug 30, 2007
Jennifer, did you and the seller meet face to face? It sounds like the seller may have been confused to see such a big down payment. As odd as it seems, confronting the seller with an an offer that was different from his expectations may have disturbed him enough to make an illogical, emotional decision, that was opposed to his own best interests, to decline your offer.

This is why I will often tell people to keep their offers as simple as possible, given the fact the contract is already ten pages long.

I don't know what your logic was in putting 50% down instead of leveraging a little lower down / higher loan to value. One reason I can see to put 50% down is if thesale price is $834,000 and you are piling that much in to keep your loan at a conventional rate. ($417,000 max conventional loan)
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more