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Wednesday, January 15, 2014

Home Seller Tips: Don't "write off" an offer for closing cost assistance.

This is one thing all sellers can agree on...

Image courtesy of xedos4 /
When it comes to selling your home the bottom line is all about the "net."

Net refers to the final proceeds you walk away with after selling.

What does it cost to sell your Brevard County, Florida home?   The cost of selling will depend a lot on your specific property.  Email me for an estimate of what it will cost for me to sell your Viera, Florida home.

Here I want to address the actual offer received.

A seller may receive an offer which includes a buyer asking for help with closing costsSellers should not not completely disregard this and refuse to consider the offer.

Remember selling is about the net - not the selling price.

If helping the buyer with some closing assistance works, why not?

Why do buyers ask for assistance?  There are many reasons including saving cash for moving costs or perhaps the after purchase repairs.  It could be the buyers are first time home buyers and can qualify but are tight on cash.

As a seller the why is of no concern, right?  After all it is the selling price... more accurately, the net.

Still consider bumping a sale price higher if the costs are to be included?  Or consider a partial contribution.  Still, the purchase price still must be within the appraised value.

Another consideration is the type of mortgage involved. 

If it is an FHA loan, the maximum allowed seller assistance is 6%.  If a VA loan is involved then I believe the limit is 4%.   And then, in some cases, the lender may reduce the selling price by the concession amount. 

The key point - don't write off a request for closing assistance.

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