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September 9, 2009
Making an offer
A co-worker is mine just got pre-approved for a mortgage. The property is listed at 518k (in Laurel, Maryland). He wants to offer 400k. He actually got pre-approved for around 475k. If he tells them that he can only afford "400k" will they ask for pre-approval letter before taking the offer serious? He wants the property but would not be devastated if he lost it. Should he even mention how much he was pre-approved for? What would be the best tactic for getting the best price. He stated he will not go any higher than 450k. Thanks in advance.
Comments
Just make an offer! It's not about what he can afford, it's about what the property's worth... or what he feels it should be worth.
Posted by: Ghostnote at September 9, 2009 10:01 AM
http://www.zillow.com/homedetails/2988-Turtle-Creek-Rd-Laurel-MD-20724/36108605_zpid/
This house is particular "worth" more than those of its neighbors.
The bank he got pre-approved for (Sun Trust) has a property estimator on their site and they estimate its worth at 453k.
Posted by: guikazoid at September 9, 2009 10:12 AM
looking at these places makes me wonder... sigh, why are we in brooklyn :)
Posted by: guikazoid at September 9, 2009 10:17 AM
Most of the time you can ask the bank/broker to give you a second preapproval letter for a lesser amount in this case.
Posted by: setancre at September 9, 2009 10:33 AM
I got another pre-approval letter. In fact, I got several, depending on the property and the offer. The mortgage broker should be able to oblige.
Posted by: herkimermaid at September 9, 2009 10:38 AM
In making an offer in times like these, it's always best to play your cards close to your chest. The vendor wants the highest price possible, and sometimes they think they'll get whatever the purchaser can afford, which may bear no relationship to the market value. Start low, they can only say no.
Posted by: bohuma at September 9, 2009 11:03 AM
Agree with bohuma. I also wouldn't lie about something I may want to backtrack over later and lose credibility. Just make the offer and don't get into the other stuff. Just because you are qualified for an amount doesn't mean you want to pay it for a particular house.
Posted by: slopefarm at September 9, 2009 12:24 PM
guikazoid: you also can look at this from oposite point of view:
it is good that I do not live in Manhattan, where prices twice higher.
Posted by: bobjohn at September 9, 2009 12:28 PM
he placed the offer @400k, keep you guys posted!
Posted by: guikazoid at September 9, 2009 3:19 PM
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