Posted by Stacy (AZ) on July 17, 2002 at 16:18:22:
Sign the P&S agreement for $25,000. Put a clause in it that states you will reimburse the buyers $1000 toward some of their repair expenses. Perfectly legal and done every day.
sale $ amount too low - Posted by Rich Coccodrilli, Jr
Posted by Rich Coccodrilli, Jr on July 17, 2002 at 16:10:38:
I have an inexpensive TLC property advertised for sale for $24K. I got a call of an interested party but one problem is that they have to have a minimum mortgage of $25k as that is what the mortgage company is saying. How do I make this happen? I would not feel right raising the price. Could I cut them a check for the difference, if not then maybe I can help with the closing costs? Any ideas Thanks for the help.
Re: sale $ amount too low - Posted by GL(ON)
Posted by GL(ON) on July 17, 2002 at 18:38:20:
You have some good suggestions already such as raising the price to $25,000 and giving them a $1000 rebate.
This used to be good but some banks now frown on it.
Another way to go would be to raise the price to $25,000 and give them $1000 worth of chattels. There is a place in the agreement for movable goods or chattels that are included with the property. Such as stove, fridge, air conditioner etc.
Ask them what kind of appliances they want.Go down to Sears and put them on your charge card, up to $1000. Include them in the price. When you get the money from the bank pay off your Sears card.
If you do this there is no limit to the amount of stuff you can buy them, just put it on the sales offer and raise the price accordingly. They can tell the bank they bargained hard and got you to throw in all new appliances with the deal LOL.
They will be paying for the appliances of course, but at low mortgage rates not credit card rates. You will get the cash to pay the bill off right away.
Sound like Win/Win to me!
Re: sale $ amount too low - Posted by jeff
Posted by jeff on July 17, 2002 at 16:44:15:
you could also state that seller pays up to 4% or so closing costs and raise the purchase price for that amount. that puts them in the property for nothing out of their own pocket and you get the sale. this extra 4% will be taken out of your check from the mortgage company and you get the remaining 25K or so. nobody brings any cash to the table except the mortgage company and everyones leaves with what they want, except the mortgage company of course and they dont matter anyway since they already have too much money.