Boro Park - House hunting etiquette

amother

Sage

Sun, Dec 24 2023, 8:00 pm

Amarante wrote:

All of the examples you posted are very standard except the one about “undisclosed cash deposits” and I don’t understand what that is. 🤷‍♀️🤷‍♀️

A place that is delivered vacant is worth more money and purchase price would reflect it because the seller has paid a tenant to move out prior to putting it in the market.

No homeowner is going to take their home off the market if someone might not get financing. That is not a seller’s problem. Most buyers don’t have that issue because they have been pre approved for a loan.

Waiving inspection is unreasonable but you haven’t mentioned that so I assume you haven’t had to deal with seller who wants you to take it as is.

I disagree.

Waiving mortgage contingency is definitely not the standard, and most people don’t do it. The norm is to just give over the pre-approval letter

If the house is being occupied by tenants that’s a different story, I assumed OP meant the sellers are living there and would like more time to move out, which happens but again is not standard. And in those situations the buyer would be collecting rent for the few weeks or months that the sellers hold over. If the house is occupied by tenants then she would need to wait until the lease is over before they move out, but again she should be collecting the rent as the lease would transfer to her as the new landlord.

Undisclosed cash is difficult if you are also getting a mortgage, as you would need that cash to be accounted for during your mortgage application. There are strict rules around what money you can use for your down payment and closing, and you won’t get approved if you can’t prove you have the money or where it came from. It would essentially need to be deposited into your bank accounts and then wired to them at closing. So unless the entire house is being paid cash under the table, it would be extremely difficult to pull off. It’s normal in this day and age for buyers to make all cash offers, but it’s not the standard either and I’m not sure how they would even try to put that into the contract? They know you are applying for a mortgage so I’m not sure what exactly they’re asking for with it

Either way- do not back yourself into a corner. If something feels off or wrong, don’t do it. I lost so many houses because of ridiculous requests by the sellers. I lost a house I was already in contracts with (I sent the deposit!) because someone came along and offered them more. I got offers rejected for not waiving mortgage contingency, or for not waiving appraisal (because the sellers knew it would not appraise for what they were asking). I had sellers request my parents be added to contracts or request I waive inspection. It was such an emotional roller coaster, and there were houses we really loved and were so disappointed in not getting, it seemed like it would never happen. In the end we got the perfect house, got it at the perfect price, and had a really smooth experience with it (BH because I had told DH it was the last one we were trying for, I had no energy to continue). Everything happens the way it’s supposed to and the other houses just weren’t meant to be our home. Hang in there, the right one (with the right buying experience!) will come along

amother

Tue, Jan 23 2024, 10:17 am

amother Sage wrote:

you are applying for a mortgage so I’m not sure what exactly they’re asking for with it

Either way- do not back yourself into a corner. If something feels off or wrong, don’t do it. I lost so many houses because of ridiculous requests by the sellers. I lost a house I was already in contracts with (I sent the deposit!) because someone came along and offered them more. I got offers rejected for not waiving mortgage contingency, or for not waiving appraisal (because the sellers knew it would not appraise for what they were asking). I had sellers request my parents be added to contracts or request I waive inspection. It was such an emotional roller coaster, and there were houses we really loved and were so disappointed in not getting, it seemed like it would never happen. In the end we got the perfect house, got it at the perfect price, and had a really smooth experience with it (BH because I had told DH it was the last one we were trying for, I had no energy to continue). Everything happens the way it’s supposed to and the other houses just weren’t meant to be our home. Hang in there, the right one (with the right buying experience!) will come along

Thank you for your post! I have no more energy. I literally was down all day yesterday.
These brokers keep hiding really important info. Dh keeps calling, we are doing our due diligence and my hopes keep crashing.
Yesterday's loss was hearing that the tenant there now that the broker said is moving, is dealing with her own housing issues and literally just started construction. Technically, he wasn't lying, the did say they bought a house. Realistically they won't be out before a year.

amother

Tue, Jan 23 2024, 10:22 am

amother Seashell wrote:

What does a cash deal actually mean? Money is wired to seller's bank? Or actual cash 💰? If the latter, what percent of the sale is being brought in cash to the closing?

Fully cash usually means no mortgage at all. There are lawyers and deeds drawn up, but no bank involved. I think it means a transfer, not actually sacks of $$.

My issue was this, seller is asking for $1.7. He wants $700000 in cash so the legal asking price is only $1m. He 'lets' you take a mortgage on the $1m. I need to cough up the $700000 plus the required down payment, oh and possibly construction costs. That doesn't work for regular people. I'm no millionaire.

amother

Tulip

Tue, Jan 23 2024, 10:28 am

amother OP wrote:

Right, but the less money you take out in mortgage the bigger the chance you’ll get approved and not back out on seller.
And re under a million it’s to save on certain taxes.
It’s very hard the process, going through the same!