One of the offers is $367,500 VA, and they’re asking for a 3% credit for closing costs, and another 3% for discount points.
Typical closing costs for buyers run from 1.0% to 1.5%, where does the other 4.5% to 5.0% go?
We probably won’t have to worry about it, because the REO managers are going to take a lower offer with a higher net, and not have to sweat an appraisal issue.
If your loan broker is telling you that you need an extra 4.5% to 5.0% packed into your offer, and to just raise the price to compensate – go find another lender!
Here are the guesses for our contest:
|$325,000.43||Renter Pete in Carlsbad|
|$327,900||no bubble here|
|$340,500||Al in IC|
The list price is $314,900. Here is the link to the original post on the contest, with video:
Four Padres Tickets!