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If we find a way for them to buy at that price that meets their budget needs and qualifying ratios...but not before
Cedar Hill, TX
If they want to go above the limit, it is time to ask about the resources that will make that possible. Many buyers have family assistance or a co-borrower.
Michael Thacker - Re/M...
Yeah, you do. I would show them the home, and see if they find the funds to go up in price. If however, they are expecting that $250K home fo $200K, the headaches arise.
What a story William! I try to get an idea of their maximum price range and filter through to the truth. Most buyers are looking below their means. The one thing I share with buyers is that we need to know the absolute maximum price they can afford and the absolute maximum price they should pay that allows them to enjoy their home without being house poor. I also explain that going up about $10,000 in purchase price is only another $60 per month and that paying extra for a better home as well as future investment is more like a savings account than a house payment. Buying a bit higher could save them from having to make their next move sooner.
You are talking about a 25% increase in the mortgage. Roy Kelley hit the nail on the head.
Too much of a range difference. In Oklahoma I can look up on what is owed but in a sellers market $10,000 off the list would be a normal deal.
I think you were very fortunate with that 400's buyer.... why waste your time, if the home is worth 250.... are you in a buyer's market??? is there a glut of listing on the market? I wouldn't do it....
William Feela I agree with Roy Kelley If they wish to go above their pre-qual level, let's see where the funds are coming from.
On the buyer.
On the market.
On inventory levels.
When I get a pre-qual letter from their lender I always call the lender to chat and always bring up that question because inevitably they will want to look at something above their stated price point when what they want cant be had at that price. If thier lender tells me that they are max'd out I have the information already to speak to them about reality.
Only if they have the cash to close!
If they could tell me where the extra down payment will be coming from.
I wouldn't have shown it to them, and apparently I would have lost the deal. Good for you!
Good morning William. I would not, unless I got the go ahead from the client and if it was OK, I would also follow up with the loan officer.
Have had cagey buyers who didn't want anyone to know what they could actually afford. Their feeling is that if the letter shows high, the seller won't negotiate as much. They have a point.
I would have to talk to their lender first. Sometimes the letter is less than they really qualify for.
Either they have a rich Uncle you haven't met or your SP/LP ratios are at 75%. They just might surprise you!
Sometimes they can go higher and just don't want to so it depends. If they have more downpayment at their disposal then it could work.
I would have a discussion with them about the extra monthly cost on their mortgage and see whether or not they could afford this kind of house.
No, they are not qualified and the difference is to great. I would look at it before I said no to see if I think it is worth that price or over priced. That could make a difference.
Probably. Unless I know the can't go higher.
Yes for many reasons but only one time. The lessons have to be learned and appreciation for your Realtor as well. After that, we do what the agent says
Sure if you think that they can stretch or the seller will take less.
It depends on a few factors. Firstly, are they actually willing to pay $250? If so, where are the additional funds coming from? Then, too, there may be properties priced at $250K that really should be $200K. There may be homes priced at $250 that have been on the market for a long time and the sellers are getting motivated. I discovered owners of vacant homes tended to be more "flexible" on price. Knowing your market is the key. Good luck, William.
If they truly CAN buy it, yes, but if not, I explain the sellers clean the house, get out with kids/pets and if they cannot buy it, better not to put the seller out.
pre qual per who? them? or a lender? there is a diff as you know... if showing the 250 makes them feel better about the 200, then show it. the 250 may make them feel badly about what they can afford. or it may make them feel great about what they can afford