Kamusta Kayo Marisol!

  Ok I agree with Chris mostly, he is correct in his figures ....except when he says: "However, it is always good to put any money down and pay your own costs if you at all can..."  ... then I do not agree totally. What he says is true only if the seller has no equity left at all and you must add in your costs by raising the sales price or if the seller would have came down on price but now instead of you getting that discount the seller is using it to pay your fees/costs....then yes you could be actually financing in your costs and having to pay them in your loan whereas a down payment in real cash avoids that...but let me explain it another way ok. –

  First, I am a Broker and my younger son is a Banker and 5 of my family members are also Realtors... and sometimes we as a family do not agree on strategy when putting in an offer. One thing we all agree on is that many times money is left on the table, or in other words a buyer does not get the best deal.., due to them or their agent not having a good strategy and negotiating skills. I am assuming at this point that you DO NOT have an agent and are beginning your search. – You need a good, strong negotiator for an agent.

  In today's market, as you may know, sellers are having a hard time in getting their homes sold. Some are desperate to not hurt their credit, yet they hold on to a sales price that is too high for the market. Some of these people have good equity in their homes and some do not. Those that do have good equity can often times be convinced to take a lower offer by simply showing them the facts concerning local sales in terms of what is selling and what is not…. and at what prices. You REALLY need to have a great real estate agent who is sharp, savvy, up to date on current trends and willing to submit the offer themselves to the seller.

  Ok - Here is how we get it done and this is important to remember. "Back in the day”, perhaps 10-20  years ago anyway, it was common for a Buyers Agent to actually call the Listing Agent and arrange for a time to present his or her buyer's offer in person.... but, in my humble opinion, too many Listing Agents today are not aware that it is still permissible and proper for a Buyers Agent to present the offer and the Listing Agent many times will feel as though they are loosing control or may have fear that their client, the seller, will be upset by an offer that is too low etc. However, please know this.... its YOUR AGENTS RESPONSIBILITY to represent you to the best of their ability, period. Not to just fax your offer over to the other agent and sit back to wait for the best results. That should only be done if it’s a done deal to begin with and the agents have conferred or bargained ahead of time as to what the best deal can be, albeit, that is not recommended in general. I could write a whole article about that one topic, but suffice it to say that your great agent can do some research ahead of time to find out when the house was last sold, how much is estimated to be owing on it now and should be able to find out how motivate the seller is and so on, sometimes even the Listing Agent will give up these details willingly. When the seller is properly approached…, it should always be with humbleness and in a kind way but with a show of strong conviction that this is a good offer.

  I hope this has helped you in some way to see that yes, when the seller has equity still in their home…, then the seller can pay for your down payment and closing costs and you will not need to finance it into your loan at all. Your agent must be strong and find all the hot buttons, facts and details ahead of time….then go present your offer!

All my best,
-Don

Maraming salamat po / Thank You in Tagalog