| Posted By |
Message |
rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
|
Sellers Concession for dummies... (ie: me)
Hi,
again, i need this explanation. it is something i just don't understand.
can you give me an example? can you use simple numbers?
haha
|
Posted 10/16/09 7:44 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Sellers Concession for dummies... (ie: me)
sure
you buy a house for $100
you need a 6% seller concession to cover closing cost
so you get a mortgage for $106
when you close the sellers give you back the $6 for closing costs
BUT the house has to appraise for $106
if not you are out of luck for a sellers concession
|
| Posted 10/16/09 8:30 PM |
| |
|
rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
|
Re: Sellers Concession for dummies... (ie: me)
Posted by Beth
sure
you buy a house for $100
you need a 6% seller concession to cover closing cost
so you get a mortgage for $106
when you close the sellers give you back the $6 for closing costs
BUT the house has to appraise for $106
if not you are out of luck for a sellers concession
So, it's specifically for closing costs. no other reason?
|
| Posted 10/16/09 8:43 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Sellers Concession for dummies... (ie: me)
yes....only for closing costs
|
| Posted 10/16/09 8:44 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Sellers Concession for dummies... (ie: me)
6% for FHA (max)
3% for a conforming (max)
(I didn't know that but my BF is sitting next to me)
|
| Posted 10/16/09 8:45 PM |
| |
|
rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
|
Re: Sellers Concession for dummies... (ie: me)
Posted by Beth
6% for FHA (max)
3% for a conforming (max)
(I didn't know that but my BF is sitting next to me)
aw cute!
|
| Posted 10/16/09 8:45 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Sellers Concession for dummies... (ie: me)
hope this helps!
|
| Posted 10/16/09 8:50 PM |
| |
|
BaroqueMama
Chase is one!
Member since 5/05 27530 total posts
Name:
me
|
Re: Sellers Concession for dummies... (ie: me)
Beth explained it better than I could have, however, some buyers run into the problem of sellers not understanding what a sellers concession is, and they think they are taking less money for the house, and so out of sheer lack of understanding, the seller refuses to do a seller's concession. At least that's what I've been told by many mortgage and real-estate people.
|
| Posted 10/17/09 7:20 PM |
| |
|
alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
|
Re: Sellers Concession for dummies... (ie: me)
we also had a clause in our contract that says we couldnt get out of the contract is it doesnt appraise enough for the sellers concession but it appraises enough for the accepted offer.
That way the seller is protected.
|
| Posted 10/17/09 7:57 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Sellers Concession for dummies... (ie: me)
Posted by alli3131
we also had a clause in our contract that says we couldnt get out of the contract is it doesnt appraise enough for the sellers concession but it appraises enough for the accepted offer.
That way the seller is protected.
yes that is standard
|
| Posted 10/17/09 7:58 PM |
| |
|
headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
|
Re: Sellers Concession for dummies... (ie: me)
Posted by prncsslehcar
Beth explained it better than I could have, however, some buyers run into the problem of sellers not understanding what a sellers concession is, and they think they are taking less money for the house, and so out of sheer lack of understanding, the seller refuses to do a seller's concession. At least that's what I've been told by many mortgage and real-estate people.
yes, this is true, and the seller's REA should be able to explain to them that this is not the case if they are concerned. it does not affect the sellers at ALL (and they should have a clause put in the contract as described above).
we did a seller's concession of 3% (with an FHA loan) and would have been responsible for any additional closing costs, but there were none.
if you want to be extra conservative (meaning save more of your own money), it could be a good idea to request a 4% seller's concession, because most closing costs will be between 3 and 4% of the homes value. but again, you run the risk of the house not appraising for what you need it to.
|
| Posted 10/17/09 10:08 PM |
| |
|
