Timeline for Does a larger down payment make an offer stronger?
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11 events
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| Mar 29, 2017 at 13:25 | comment | added | JimmyJames | @Kevin IANAL but if the buyer makes an offer in bad faith I believe the seller is free from the contract and may take other offers even if the financing is secured on time. | |
| Mar 29, 2017 at 5:23 | comment | added | Sumyrda - remember Monica | Does the downpayment matter if you come with a preapproval from your lender? I guess that would be even better than a large downpayment (although you might only get that preapproval if you plan with a large downpayment anyway). | |
| Mar 29, 2017 at 0:25 | comment | added | Kevin | And what prevents the buyer from lying? | |
| Mar 29, 2017 at 0:07 | comment | added | xiaomy | @Kevin Nothing prevents the buyer from disclosing this to the seller, if he or she thinks it would make the bid more appealing in a seller's market. Of course you can always choose not to say anything about your financing. | |
| Mar 28, 2017 at 23:45 | comment | added | Kevin | "All else equal, if you are the seller with multiple offers coming in at similar price level, would you pick the one with 20% down or 5% down?" Why do you think the seller even knows what the buyer's downpayment will be? The mortgage terms are entirely between the buyer and their lender. My wife and I even changed our downpayment during the escrow period. | |
| Mar 28, 2017 at 17:04 | comment | added | JTP - Apologise to Monica♦ | @Mindwin - exactly. I am a Realtor as well. I rejected, after consulting my seller, multiple offers for $280-$300K. Much to the chagrin of her son. The home sold for $335K, $5K above asking. The 2 extra months cost her a bit in utilities and taxes, but the extra $30K+ made it worth it. The rejected offers included 100% cash. And the agents I rejected tried to push "cash" as valuable. Either way, my client has cash in her bank account now. | |
| Mar 28, 2017 at 15:15 | history | edited | xiaomy | CC BY-SA 3.0 |
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| Mar 28, 2017 at 14:50 | comment | added | Mindwin Remember Monica | The realtor just cares[1] about getting his cash the fastest possible. He is even willing to take home less cash if he can close faster. Though controversial, the freakonomics article about realtors come to mind (and Joe has posted it in another answer). So never let a realtor push you around. He is there to do a service to you. [1]: Some (few?) realtors do think that getting you a good deal is a big plus. | |
| Mar 28, 2017 at 13:04 | history | rollback | xiaomy |
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| Mar 28, 2017 at 13:04 | history | edited | xiaomy | CC BY-SA 3.0 |
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| Mar 28, 2017 at 12:56 | history | answered | xiaomy | CC BY-SA 3.0 |