How you sell your home in this market!

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[patientrenter]

Some of those singing the praises of cash back may be missing the point that it misleads the lender into lending too much. The lender ends up lending money for whatever the buyer wants to spend it on. Loans like that are risky and should bear a higher interest rate. Cash back is a way to get the lender to charge a low-risk rate for a high-risk loan without the lender’s knowledge or agreement.

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

Patient renter in OC

[patientrenter]

Some of those singing the praises of cash back may be missing the point that it misleads the lender into lending too much. The lender ends up lending money for whatever the buyer wants to spend it on. Loans like that are risky and should bear a higher interest rate. Cash back is a way to get the lender to charge a low-risk rate for a high-risk loan without the lender’s knowledge or agreement.

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

Patient renter in OC

[patientrenter]

Some of those singing the praises of cash back may be missing the point that it misleads the lender into lending too much. The lender ends up lending money for whatever the buyer wants to spend it on. Loans like that are risky and should bear a higher interest rate. Cash back is a way to get the lender to charge a low-risk rate for a high-risk loan without the lender’s knowledge or agreement.

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

Patient renter in OC

[patientrenter]

Some of those singing the praises of cash back may be missing the point that it misleads the lender into lending too much. The lender ends up lending money for whatever the buyer wants to spend it on. Loans like that are risky and should bear a higher interest rate. Cash back is a way to get the lender to charge a low-risk rate for a high-risk loan without the lender’s knowledge or agreement.

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

Patient renter in OC

[one_muggle]

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

You should feel defrauded, because when the bailouts hit full steam during this election cycle, we will ALL be lenders… =8^O

During the recent Bernanke questioning a senator already pulled the political trump card: “but the children are weeping”. I’m pretty sure I heard him mumbling something about rumors that Countrywide printed mortgage applications on the hides of slaughtered baby seals. I figure that once Elton John writes a song about foreclosure families, I’m just going to get it over with and send all my money in to the IRS.

[one_muggle]

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

You should feel defrauded, because when the bailouts hit full steam during this election cycle, we will ALL be lenders… =8^O

During the recent Bernanke questioning a senator already pulled the political trump card: “but the children are weeping”. I’m pretty sure I heard him mumbling something about rumors that Countrywide printed mortgage applications on the hides of slaughtered baby seals. I figure that once Elton John writes a song about foreclosure families, I’m just going to get it over with and send all my money in to the IRS.

[one_muggle]

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

You should feel defrauded, because when the bailouts hit full steam during this election cycle, we will ALL be lenders… =8^O

During the recent Bernanke questioning a senator already pulled the political trump card: “but the children are weeping”. I’m pretty sure I heard him mumbling something about rumors that Countrywide printed mortgage applications on the hides of slaughtered baby seals. I figure that once Elton John writes a song about foreclosure families, I’m just going to get it over with and send all my money in to the IRS.

[one_muggle]

I don’t know if it’s legal, but I would feel defrauded if I were the lender.

You should feel defrauded, because when the bailouts hit full steam during this election cycle, we will ALL be lenders… =8^O

During the recent Bernanke questioning a senator already pulled the political trump card: “but the children are weeping”. I’m pretty sure I heard him mumbling something about rumors that Countrywide printed mortgage applications on the hides of slaughtered baby seals. I figure that once Elton John writes a song about foreclosure families, I’m just going to get it over with and send all my money in to the IRS.

[the dingo]

I would agree it is misleading if the lender does not know, but money back for legit repairs has been a part of loans for years (as I remember it can be up to like 10% or something) a loan expert or realtor could answer this (comments?), plus having a seller pay points is totally legit. Basically, having the seller pay your fees is legit money in your pocket and lowers your payment a win/win for buyers. My point then being that money in hand is more attractive to buyers then a lower price, and this string was about the best way to sell a home in this market. As a recent buyer, I felt that this was relevant.

[the dingo]

I would agree it is misleading if the lender does not know, but money back for legit repairs has been a part of loans for years (as I remember it can be up to like 10% or something) a loan expert or realtor could answer this (comments?), plus having a seller pay points is totally legit. Basically, having the seller pay your fees is legit money in your pocket and lowers your payment a win/win for buyers. My point then being that money in hand is more attractive to buyers then a lower price, and this string was about the best way to sell a home in this market. As a recent buyer, I felt that this was relevant.

[the dingo]

I would agree it is misleading if the lender does not know, but money back for legit repairs has been a part of loans for years (as I remember it can be up to like 10% or something) a loan expert or realtor could answer this (comments?), plus having a seller pay points is totally legit. Basically, having the seller pay your fees is legit money in your pocket and lowers your payment a win/win for buyers. My point then being that money in hand is more attractive to buyers then a lower price, and this string was about the best way to sell a home in this market. As a recent buyer, I felt that this was relevant.

[Author]

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