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.
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
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.