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This is just a suggestion but if you are buying a home that is advertised on the MLS, do you have to go through your broker? If you aren't on 100% commission split, then the chances are you must. However, if you can figure out what the broker's portion is of the 3% compensation (if that's what's being offer) and then negotiate to "give up" whatever portion you have in exchange for a credit towards closing costs, I would think that would satisfy the seller somewhat because there's no additional out of pocket expense for him. Of course, you'd have to confirm this with your broker, first.

Having said that, the market here is very tough on 100% financing buyers but it's getting better than it was just 12 months ago in certain markets here in Virginia. There was a time when I couldn't even consider writing an offer with 100% financing since most buyers were not only offering $20K over list price, but also deleting the appraisal clause and putting down $50K!! It's hard to compete with that!

If your market is similar, your financing option might be frowned upon by listing agents and sellers alike but you can't blame them. It's not in their best interest to take a contract that puts their bottom line at risk.

Another option is 103% financing. I've seen it go as high as 107% to cover closing costs. If you're working with a savvy lender that you trust, they should be giving you lots of options...as long as your credit and income are acceptable.

I'm not sure any of this is of any help to you, but I sure wish you the best of luck. It's not easy out there for homebuyers.

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"It's a Wonderful Life"
Irene Morales Ward

I ask myself this question on a daily basis. Buyers to!

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Infinity Commercial Group - Commercial Lending Services

Infinity Website

Everything is negiotable even in a seller's market. The Phoenix market is starting to change. I see a lot more inventory coming on the market and it's taking a lot longer to sell houses in certain parts of the valley. What part of the valley are you looking to buy in? A lot of what you can do depends on the location of your property as well as its owners.

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Are you looking for a home to live in or flip? If the former, your perspective should become more objective. Why buy a home you plan to live in for an inflated valuation when national indicators point toward correction. If you buy with a 100%+ loan and the value of the home decreases in the future, you might find yourself upside down and in negative amortization.

If you're buying to flip, don't hang onto it too long.

I tend to take a fairly conservative view of real estate financing and others' will have very different opinions about this.

But why would you pay more than the asking price? I know in a hot market it may take that to get a particular home you really want, but entropy forces all hot things to cool. Don't get caught upside down.

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Rick Wheat, Wheatworks Software, LLC
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