Lowballing Asking Price By Offering Larger Downpayment

A home I was interested in recently went under contract. The asking price was $134,000. I could only offer between 110-115,000. I decided to wait because I thought it would sit on the market for a while and I would be able to offer my price. Unfortunately that strategy worked against me.



Since down payments upstate usually run between no money down to 20% down, I"m wondering if a higher downpayment (25-35%) might be an incentive to accept an offer that is below asking price?



Thanks in advance for your opinions.

Comments(2)

  • ypochris9th September, 2007

    True, if the buyer has not yet qualified the chance of being able to remove a loan contingency is greater with a higher down payment.

    Chris

  • NewKidInTown310th September, 2007

    I have purchased with 100% cash, with 97% financing, and financing at various LTVs between 50% and 95%. The amount of financing required to purchase the property has not made a bit of difference in the purchase price.

    Rather than the downpayment, I suspect that a very large earnest money deposit may induce a somewhat motivated seller to accept a lower offer with no financing contingency versus a higher offer with minimal earnest money and a financing contingency.

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