OfflineHey everyone!
We have two properties that we are interested in making offers on, but we don't have the financing in place yet. I'm not sure if others have made offers on houses without a down payment listed. We'd like to follow Matt's 25:1 formula. My question is, if you're going to be offering 30-50% off FMV, is it realistic to not have your down payment listed with the offer? Thanks!
Vincent
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"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53
When making offers, and you are using financing there is something that will go with the offer called a financing contingency addendum. It is basically an addendum that will go along with your offer to purchase and it states that you will only purchase the home if you can obtain finacing on certain terms. You are the one that determines those terms, because it is your offer. The seller then would have the choice to accept or decline your offer at that point. Please, keep in mind that any down payments required are determined by the lender that you are using and it is generally a percentage of the purchase price.
Making offers is very exciting, what a great example to follow!
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Welcome to the DG family, glad to have you with us. I didn't put a down payment on two of my offers, the third one I did because the owner was reluctanct to give me the keys so I could start fixing it up. So it was basically just "skin in the game" so I could get the keys. But as Salden said it's all negotiable. It's your offer, make it your terms. There's plenty of deals out there so if you don't get one on your terms you can just move on.
Best of luck! =)
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Thank you for the welcome, Elena!
Your and Salden's replies were extremely helpful! A lot of this stuff makes sense, but sometimes I get stuck on a point or aspect and I'm left scratching my head saying, "Wait...how??" I'm working on making myself a consistent presence on the forum, so I should be around much more in the coming months (If I'm not, both of you feel free to give me a stern "nudge"!)
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53