Hi,
I know my earlier mail sounds as if it was all a planned out lie but it wasn’t. When we made the offer I told the seller that we couldn’t go beyond a particular amount because we couldn’t afford it. From there, there was a lot of assumptions and I never clarified them so we ended up where we are now.
I know I should have been more up front but things did get out of hand a little…
I just want who ever reads my post to know that we didn’t go out to lie or swindle the guy.
Thanks Ed again… I’ll do much better next time…
Shalini
I’ve been learning a lot from this site for a long time and now my husband and I are ready to buy our first home. Actually there is no creativity being used in this deal but I had a few questions and any replies are greatly appreciated.
The house is very nice and being sold by owner. Seeing the comps and everything we felt the house was being sold above value especially since no realtor was involved.
To make a long story short we have given the seller the impression that we can close very quickly because we have been pre-approved and have no other commitments.
Also we asked for a lower prize saying that we were only approved for that much.
Now the seller hasn’t accepted yet but when my husband spoke to him today it seems like he’ll probably accept since he thinks we can close quickly.
What I’m worried about is that we don’t have our finances ready yet. I have started the process but I have no idea how long it will take.
And another thing is I know I could have been approved for more, if the seller gets to know this will the deal fall through?
I’m sorry if these are silly questions but I had no idea whom else to ask…
Thanks in advance.
Shalini
Ed is a much more experienced investor than I, but I have been around business in general for a while and he is right, tell the truth (as best as you know it to be). However, it won’t do you any good to “assign blame now” just learn from it. I have learned that emotions run high when money is involved. Step back and look at the facts of the case.
Have you signed a purchase agreement that states what date that the closing has to occur?
(If it is at least 30 to 60 days, you are probably OK)
Impression don’t count for a lot, Ask the seller now, Before he accepts your offer, when did he or she expect for closing to occur. And then shut-up and listen. If he tells you earlier that 30 days. Ask him when doe he really need to have his money (Shut-up again) Find out what that need is (Leaving town, sick relative needs plane tickets, etc) Whatever the actual need is find a way to fill it.
If the seller finds out that you were preapproved for more… How would he? Are you going to tell him? Your lender won’t tell him? There are no documents that I know of that will tell the buyer that you have been pre-approved for whatever.
I had my mortgage broker make out 4 preapproved letters with 4 different values. So depending on which price range I am shopping in I can pull out the one that matches my offer. I don’t say that this is ALL the money in the world that I can borrow. (Did you say that?) I make my offer and say that I have been preapproved for this offer I am making. This also helps me stick to the price that I have done my homework on. When we investors shop for our own homes, it’s hard not to let emotions sway you. Good luck and remember there is always another home around the corner that is “perfect for you”
Re: How long does it take to close? (…long) - Posted by Eduardo (OR)
Posted by Eduardo (OR) on May 13, 2000 at 23:44:07:
Shalini–
Why do you feel you have to lie to the seller? It just gets you into trouble. I am always amazed when I hear stories like yours because I have found in over 25 years of working with buyers and sellers that honesty is always the best policy. Next time get your ducks in line and tell the truth. --Eduardo
