Bank financing / MLS

If you buy a property of mls and the list price is already way under market.

Would it be possible to offer higher than the listed priced to get cash back?

Or would this be a problem with the banks?

generally speaking, many lenders have some sort of process to compare the listed price against the loan amount/amount being represented as the sales price

its always easier to achieve what your trying to acheive with no listing “paper trail”

So if I negotiate a price under the listed price that meets my investor standards for a profit.

Then sell at the listed price with a double close process.

Then I should be fine ?

I see how that could work.

You of coarse would need to make sure the listing agent is confortable with that. (it may or may not matter depending on how smoothly and quickly the first close takes place)

Most lenders use the lower of the sales price or the appraised value as the “actual” value. You will not be able to find a lender that will allow you to get cash back from the seller at closing. A double closing or an “inverse purchase” are a couple of ways to accomplish what you are trying to do.

Thanks for the advice.

I just happen to know of a family member who is ready to buy.

Plus I know my agent personally.

The listing agent I would probably have to work on that part.

Thanks agian

The lender doesn’t care what it lists at, they care what it appraises at. Most lenders require a 6 month seasoning period before they will accept a higher appraised value although I know of a couple that have a 1 day seasoning for situations like this. Just make sure the lender your buyers are going to use don’t have a seasoning requirement.

Your real estate agents wont care, they make their commission from the sale.

The trick is going to be to get it into your name for the few moments before the new buyer closes. The current lender wont release title until they are paid and the new lender wont release funds until they are sure they can get the title.

I’m sure there is a way around this but I’ll leave that to someone else.