Posted by Lyal on August 10, 2003 at 13:27:37:
The $21,750 would be the total of the payments with the principal and interest, not the price. You can use your financial calculator to figure out what the actual price was.
That said, you NEVER hide anything in your transactions. Apart from the ethics issues, it’s a recipe for disaster somewhere down the road. The free legal attorneys would salivate at the chance to beat up on you.
I always talk about the price, terms and anything else that’s relevant up front. If they have a problem with it, we discuss it and I explain that if they can pay cash I can do better on the price, but if we’re doing the financing, we’re just a small operation and we get paid for giving people the opportunity for getting into a home when noone else will help them.
I always put the price, interest rate etc in BOLD type in the documents and they initial each page. I also use “2 multiple originals” so they have a copy they can take with them right then (they get to choose which copy) and I can never be accused of changing the documents.
It has been my experience that the market we serve understands that they will need to pay a premium price to get in and yes, the down, and monthly payment are the deciding factors.
Bottom line, ALWAYS be open and honest in your dealings.
If someone complains about the price but buys the home anyway, their animosity will fester and they’ll be looking for ways to “get you back”.
All the best, Lyal