Some Buyers are a Needle in the Haystack
Not too long ago, in a land far, far away, banks gave mortgages out like candy. If you had a heartbeat, you got a mortgage. It was pretty much that simple but look where it got us.
These days, unless you have seriously excellent credit, income and little debt, you have to put 20% down for a conventional mortgage. So, what happens when a buyer has a six-figure income, credit scores of over 800, a stable job, preapproved for up to $400,000 with a well-known Long Island credit union, and only has to put 3% down? Punishment for being a responsible person.
When submitting good offers, we were met with resistance. "No one can put down 3% these days!" "Your buyer will have to go to our mortgage broker". Give me a break. When you have this type of buyer, who by the way doesn't come along that often, they can put 3% down if they choose to do so. Just because we do not see this type of buyer that often, doesn't mean they do not exist. It doesn't mean they won't be able to get a mortgage either just because they are not preapproved with a major bank.
Then I was asked "why doesn't your buyer want to buy a home for $400k+?" First off, that is really no one's business. But, his response was he wants to be able to continue contributing to his investment accounts like he does now. He'd rather live in a modest home than have a larger home that could become a ball and chain. Who really wants to live like that? I know I don't.
Some of us choose to live our lives the way we do. I live in a two bedroom townhome in West Babylon. I could afford to live in a much larger home but then it would be like running a small business and I already have one of those. My buyer feels the same way. We all work long hours and to have to come home and maintain a larger home each day would be time consuming. It would leave little time for other things like spending time with family and friends.
The next time you come across a buyer like mine, be grateful that they are making a really good serious offer and embrace the fact that they are a responsible buyer. A buyer like this doesn't come along every day.
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