IF the $8,000 credit is extended and the new law allows people to buy using it as a down payment then by offering concessions you have effectively allowed someone who can not afford to buy a house to buy yours. You may even have given them the opportunity to get paid for taking your house off your hands.

To me it is better overall for only qualified buyers to buy. If someone can not afford to buy then let them wait until they can. BUT for a seller, this may give you the chance to get someone to buy when they know they can not really afford to.

I would rather have my seller reduce the price if the buyer can come up with their own closing costs. Since the sales price is lower, there would be less appraisal worries, less fees paid, less taxes on sale and possibly less capital gains.

For the buyer, the money given by a seller to use towards closings costs/prepaids or to buy your rate down may be more beneficial than lowering the price. Reducing the price $10k may only reduce your payment by $50 a month buy using that money to buy down your loan say from a 6 to a 5% rate may reduce that same payment by $125.

Merr, I wondered about that as well. I ran some scenarios on my web calculators and posted the results on the seller assist page (see below). You can run you’re your own calculations on the PA Mortgage & Closing Cost Comparison Estimate calculator page.

The last three homes that sells in a given neighborhood will determine the future value. If the true value of a home is $200,000.00 and the seller sells for $190,000 that could be the beginning of declining value to that neighborhood. The buyers will be happy to get a reduced price, however, they may take a greater loss when he or she sell five lated.

Hello Merr!

Simply said, Seller's Assist is for a Home Buyer that does not have any money saved in their Bank Account. Known as a Buyer that is "cash" poor. Many people in this economy find it hard to save money but they can afford the monthly payment. So, If you do not have money in the bank for closing costs and down payment this is a great way to get it. But, another way to get help with down payment and closing costs would be to see if you qualify for PHFA programs and then you will not need seller's assist. The best Mortgage company to work with is MetLife Home Loans. You can check these programs out at http://www.phfa.org.

I have many home buyer video's at my website for all PA Home Buyers...hope it helps.

The sellers assist helps the buyer with the closing costs when more of their own funds would be needed to cover the down payment of the loan. They will both mean the same thing for the seller, but for the buyer it can be two different things.

Hope that helps,

Terrence Charest, e-Pro

It's the same thing. Many transactions including short sale and REO's(foreclosures) are seeing credits to buyer for closing costs. But keep in mind if you are in a multiple offer situation, the seller and banks (if a foreclosure) are looking at the net proceeds in your case is 190k on a 200k offer. Also be careful if over bidding with new appraisal guidelines