Quote:
Originally Posted by berettafan
5% of sale price to compensate for risk. Sale price is irrelevant. It's just as reasonable as what the buyer offered so why not propose it?
I know the bank will never take a 70% second, and in fact said as much.
The house is overpriced. If it were not OP would have received an offer of full payment.
6% to play in the financial gutter? OP can't find a way to make 6% elsewhere? it's a suckers bet and doesn't even pretend to compensate OP for an enormous risk.
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Agreed you did say as much about the 70% second. Sale price isn't irrelevant and still way to much info to be obtained to make a decision. First is OP's financial position. He may be able to absorb the 5% loss on a $100,000.00 deal but not $50K on a $1M deal. So price is very relevant.
How do you know the house is over priced? You don't know the price, the market, length of time on the market. No way to tell from the original post. For all you know house is undervalued potential buyer sees a deal and makes what looks like to an unknowing seller a full price and earn some interest. House may have been on the market one day and this is the first offer by a savvy investor trying to grab it.