Overcast
Overcast
30.2 °F
December 18, 2014
River Reporter Facebook pageTRR TwitterRSS Search

Why the Buto offer is not higher

Daniel R. Cawley

Whether or not Weiden will get his loan can be resolved quite easily. All that’s required is a two-hour meeting between Weiden and any good loan officer at any decent bank. Such a meeting will give everyone the answer they need as to whether Weiden’s mortgage application will be approved. Two hours! I am assuming that they certainly would be approved. People with those kinds of resources do not easily or lightly target a parcel without knowing upfront whether or not they are going to get a mortgage loan. People from that level of society almost always have a long standing relationship with a bank or two, eager and willing to make large loans. Many active real estate investors keep all their financial data on a hard drive in their bankers’ offices so that new loans can be quickly approved for new projects.

Brokers’ fees

What about brokers’ fees? Isn’t there a large commission due if the Buto deal closes, as opposed to the Weiden deal? Once again, the difference of $9,000 is quickly swallowed up and erased by an unconsidered transaction cost.

In conclusion, I would urge everyone, especially our school board, to look at the big picture. This is always a good thing to do when selling or buying real estate. To quickly compare $751K to $742K in a vacuum, and say that the $751K is better, simply because it is higher (when in fact it is not) is a short sighted, myopic and naïve viewpoint at best.

[Daniel Cawley has been investing in Narrowsburg and surrounding towns since 2003, and has been a real estate lawyer since 1984. He resides in Commack, NY.]