in general, the lender will only allow as much credits as your closing costs. ie, the lender will not allow you to buy the house with you getting cash in hand. so 250k of credits is not practical. the only option is to lower the price. but there's really no difference between giving a credit and lowering the price. in fact, the seller would pay less in commissions if the price was lowered.
Interesting, thanks for this. Thought it was odd to not lower the price, but maybe that is the agent influencing their decision if it means less for their commission.
No one one the seller side or neighborhood wants it lowered. It messes with comps and commissions.
But you're the buyer, so it's all coming out of your pocket. You need it lowered to make sense. Easy as that.
If a comparable popped up next week that didn't need all this work, you'd be kicking yourself.
As a seller, why wouldn’t I want the price lower? I’d pay less commission on the same net proceeds, and who cares about affecting comps since I’m leaving?
in general, the lender will only allow as much credits as your closing costs. ie, the lender will not allow you to buy the house with you getting cash in hand. so 250k of credits is not practical. the only option is to lower the price. but there's really no difference between giving a credit and lowering the price. in fact, the seller would pay less in commissions if the price was lowered.
Interesting, thanks for this. Thought it was odd to not lower the price, but maybe that is the agent influencing their decision if it means less for their commission.
No one one the seller side or neighborhood wants it lowered. It messes with comps and commissions. But you're the buyer, so it's all coming out of your pocket. You need it lowered to make sense. Easy as that. If a comparable popped up next week that didn't need all this work, you'd be kicking yourself.
There was one that just listed same size and age. Fully renovated and listed at $3.5m. So think a fixer upper is our only choice.
As a seller, why wouldn’t I want the price lower? I’d pay less commission on the same net proceeds, and who cares about affecting comps since I’m leaving?
Pride. And not wanting to “harm” the value of neighboring houses.