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an.
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August 2, 2009 at 4:52 PM #440494August 2, 2009 at 5:27 PM #440304
Effective Demand
Participant[quote=CA renter]
How, exactly, are these credits defined? Are they literally allowing sellers/lenders to credit buyers for 6%? How long has this been going on, and how is it reflected in the price?[/quote]
They are defined in the purchase contract.
It is reflected in the price like the examples in my above link. The purchase price $345,000 is what you would see in the public records. So the lender gives the money to the seller who allows the buyer to be credited various costs (origination, closing cost, buydown rate, etc) and so the seller nets less. The 6% can’t go for just anything (like cash in pocket or a new TV) but there is a wide range of things it can be used for.
As long as its disclosed up front to all parties it is perfectly legal.
Edit: I just talked to someone with Sandicor access. Concessions seemed to be better accounted for in SD than up here in my local area (Ventura County and San Fernando Valley). I will see if i can get a download and run some stats.
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.
August 2, 2009 at 5:27 PM #440835Participant[quote=CA renter]
How, exactly, are these credits defined? Are they literally allowing sellers/lenders to credit buyers for 6%? How long has this been going on, and how is it reflected in the price?[/quote]
They are defined in the purchase contract.
It is reflected in the price like the examples in my above link. The purchase price $345,000 is what you would see in the public records. So the lender gives the money to the seller who allows the buyer to be credited various costs (origination, closing cost, buydown rate, etc) and so the seller nets less. The 6% can’t go for just anything (like cash in pocket or a new TV) but there is a wide range of things it can be used for.
As long as its disclosed up front to all parties it is perfectly legal.
Edit: I just talked to someone with Sandicor access. Concessions seemed to be better accounted for in SD than up here in my local area (Ventura County and San Fernando Valley). I will see if i can get a download and run some stats.
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.
August 2, 2009 at 5:27 PM #441079Participant[quote=CA renter]
How, exactly, are these credits defined? Are they literally allowing sellers/lenders to credit buyers for 6%? How long has this been going on, and how is it reflected in the price?[/quote]
They are defined in the purchase contract.
It is reflected in the price like the examples in my above link. The purchase price $345,000 is what you would see in the public records. So the lender gives the money to the seller who allows the buyer to be credited various costs (origination, closing cost, buydown rate, etc) and so the seller nets less. The 6% can’t go for just anything (like cash in pocket or a new TV) but there is a wide range of things it can be used for.
As long as its disclosed up front to all parties it is perfectly legal.
Edit: I just talked to someone with Sandicor access. Concessions seemed to be better accounted for in SD than up here in my local area (Ventura County and San Fernando Valley). I will see if i can get a download and run some stats.
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.
August 2, 2009 at 5:27 PM #440906Participant[quote=CA renter]
How, exactly, are these credits defined? Are they literally allowing sellers/lenders to credit buyers for 6%? How long has this been going on, and how is it reflected in the price?[/quote]
They are defined in the purchase contract.
It is reflected in the price like the examples in my above link. The purchase price $345,000 is what you would see in the public records. So the lender gives the money to the seller who allows the buyer to be credited various costs (origination, closing cost, buydown rate, etc) and so the seller nets less. The 6% can’t go for just anything (like cash in pocket or a new TV) but there is a wide range of things it can be used for.
As long as its disclosed up front to all parties it is perfectly legal.
Edit: I just talked to someone with Sandicor access. Concessions seemed to be better accounted for in SD than up here in my local area (Ventura County and San Fernando Valley). I will see if i can get a download and run some stats.
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.
August 2, 2009 at 5:27 PM #440504Participant[quote=CA renter]
How, exactly, are these credits defined? Are they literally allowing sellers/lenders to credit buyers for 6%? How long has this been going on, and how is it reflected in the price?[/quote]
They are defined in the purchase contract.
It is reflected in the price like the examples in my above link. The purchase price $345,000 is what you would see in the public records. So the lender gives the money to the seller who allows the buyer to be credited various costs (origination, closing cost, buydown rate, etc) and so the seller nets less. The 6% can’t go for just anything (like cash in pocket or a new TV) but there is a wide range of things it can be used for.
As long as its disclosed up front to all parties it is perfectly legal.
Edit: I just talked to someone with Sandicor access. Concessions seemed to be better accounted for in SD than up here in my local area (Ventura County and San Fernando Valley). I will see if i can get a download and run some stats.
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.
August 2, 2009 at 5:54 PM #440309CA renter
ParticipantBased on the examples from your site, can we assume that many of the closed sales we see are really showing a price that is 6% over the real price (what the buyer actually paid)? Why would the price not reflect the real price (net), instead of the padded price? Do buyers not understand they are going to pay property taxes on that difference for as long as they own the house?
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.
…and nobody in power has a problem with this?
Heck, at least we have “green shoots”!
August 2, 2009 at 5:54 PM #441084ParticipantBased on the examples from your site, can we assume that many of the closed sales we see are really showing a price that is 6% over the real price (what the buyer actually paid)? Why would the price not reflect the real price (net), instead of the padded price? Do buyers not understand they are going to pay property taxes on that difference for as long as they own the house?
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.
…and nobody in power has a problem with this?
Heck, at least we have “green shoots”!
August 2, 2009 at 5:54 PM #440911ParticipantBased on the examples from your site, can we assume that many of the closed sales we see are really showing a price that is 6% over the real price (what the buyer actually paid)? Why would the price not reflect the real price (net), instead of the padded price? Do buyers not understand they are going to pay property taxes on that difference for as long as they own the house?
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.
…and nobody in power has a problem with this?
Heck, at least we have “green shoots”!
August 2, 2009 at 5:54 PM #440509ParticipantBased on the examples from your site, can we assume that many of the closed sales we see are really showing a price that is 6% over the real price (what the buyer actually paid)? Why would the price not reflect the real price (net), instead of the padded price? Do buyers not understand they are going to pay property taxes on that difference for as long as they own the house?
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.
…and nobody in power has a problem with this?
Heck, at least we have “green shoots”!
August 2, 2009 at 5:54 PM #440840ParticipantBased on the examples from your site, can we assume that many of the closed sales we see are really showing a price that is 6% over the real price (what the buyer actually paid)? Why would the price not reflect the real price (net), instead of the padded price? Do buyers not understand they are going to pay property taxes on that difference for as long as they own the house?
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.
…and nobody in power has a problem with this?
Heck, at least we have “green shoots”!
August 2, 2009 at 6:03 PM #440514an
Participant[quote=Effective Demand]
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.[/quote]
With this statement, you’re assuming that all highest offers are one that have no chance of closing? How do you know what’s unrealistic and what’s reality? Besides getting outbid and it did close above your offer.[quote=CA renter]
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.…and nobody in power has a problem with this?[/quote]
How do you know those in power are not the mastermind behind this whole thing?August 2, 2009 at 6:03 PM #440916Participant[quote=Effective Demand]
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.[/quote]
With this statement, you’re assuming that all highest offers are one that have no chance of closing? How do you know what’s unrealistic and what’s reality? Besides getting outbid and it did close above your offer.[quote=CA renter]
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.…and nobody in power has a problem with this?[/quote]
How do you know those in power are not the mastermind behind this whole thing?August 2, 2009 at 6:03 PM #441089Participant[quote=Effective Demand]
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.[/quote]
With this statement, you’re assuming that all highest offers are one that have no chance of closing? How do you know what’s unrealistic and what’s reality? Besides getting outbid and it did close above your offer.[quote=CA renter]
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.…and nobody in power has a problem with this?[/quote]
How do you know those in power are not the mastermind behind this whole thing?August 2, 2009 at 6:03 PM #440845Participant[quote=Effective Demand]
Edit2: I would also like to note that another important takeaway is for buyers to realize that even if they hear that a higher offer is in it doesn’t mean its a better offer than what you put in. Trying to compete against unrealistic offers that have no chance of closing is a sure way to overpay.[/quote]
With this statement, you’re assuming that all highest offers are one that have no chance of closing? How do you know what’s unrealistic and what’s reality? Besides getting outbid and it did close above your offer.[quote=CA renter]
So, now we have to subtract the 6% “credit” and the $8,000 taxpayers’ gift to sellers to get the real sales price.…and nobody in power has a problem with this?[/quote]
How do you know those in power are not the mastermind behind this whole thing? -
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