Home Buying in Kensington>Question Details

Kristopher, Home Buyer in Philadelphi

what is sellers assist?

Asked by Kristopher, Philadelphi Fri Oct 26, 2007

Help the community by answering this question:

Answers

13
Example: Purchase price is $100,000 with a 6% Seller Assist. What this means is that the seller will sell at $100,000 and credit the buyer $6,000 (6% of the sale price) towards the buyer's costs (or however it is stated in the contract). The seller will net $94,000. This is not the same as selling at $94,000 because it will need to appraise for $100,000 NOT $94,000. Assuming that the buyers are financing, the lenders will only loan up to the appraised value, so if it only appraises for $95,000, you will run into trouble. Even if it is a cash purchase, the buyer will probably state in the contract that it needs to appraise for the purchase price.
3 votes Thank Flag Link Fri Oct 26, 2007
Hi Kristopher. "Sellers assist" means that they are willing to help the buyer with closing costs. How much will depend on the price you are willing to pay. Sometimes, buyers are willing to pay a higher price to get more closing cost assistance. Your loan agent can tell you how much assistance the lender will allow as there are limitations. You also don't want to offer more than a house is worth to get a higher closing credit as the property still has to apprais for the purchase price. Good luck.
Web Reference: http://www.theMLShub.com
2 votes Thank Flag Link Fri Oct 26, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Christoper,
Nina and Ute have both given great examples. If you are considering this option in buying a home, be sure to negotiate your price so that the seller assist does not bump you over appraisal value. Get a current Market Analysis to use as a helpful source. Good luck
Web Reference: http://carriecrowell.com
1 vote Thank Flag Link Fri Oct 26, 2007
A Seller Assist deal is a great thing! It helps both Buyer & Seller make it to the settlement table. Not all Buyers want to deplete their savings account after he/she has just bought a new home. It's not a sign that the Buyer can't afford the property. Instead, it's another feature in the buying & selling process. I specialize as an Agent in Montgomery County, PA. Email me with your residential property search concerns or questions. I will be licensed in NJ as well by the Winter of 2013. Email: alexisjrealestate@gmail.com
0 votes Thank Flag Link Sat Jun 1, 2013
Speaking as someone who's bought and sold a few properties, seller assist is something that's best avoided by both parties. As a buyer, if you can't afford to pay closing costs, you shouldn't be buying a home to begin with. And as a seller, it's a tip off that the buyer you're working with may not be financially stable. It increases the chances that the deal will fall apart for financial reasons, costing the seller valuable time on the market. Stay away!
0 votes Thank Flag Link Sat Mar 9, 2013
Moron. First of all, once a buyer is approved for a mortgage, the seller doesn't care what the buyer's financial situation is... once they get the check from the bank, it's done.... Second, I make $130,000 per year and just spent my savings paying off the rest of my college loans. I can save up a great down payment in six months for a $300,000 house... but I found the perfect house for sale right now. Go ahead and tell me that I can't afford a house that's less than three times my annual income just because the house I want is for sale now and not six months from now. The benefit of a seller assist depends on the situation.
Flag Sun Aug 11, 2013
Seller Assist is NOT a good thing if you are the seller. This is obviously a buyers market and demands can and are being put on sellers to sell their properties. I was "Offered" this "wonderful thing" as the seller and I got so infuriated at all of the costs, taxes, fees and finally this "wonderful thing" that I pulled out of the deal. I am not desperate to sell my home. From my experience, only a "strapped" sellers or sellers who have LOTS of equity in their home would welcome this "wonderful thing."
0 votes Thank Flag Link Thu Sep 10, 2009
FHA, VA, Fannie Mae and Freddie Mac (conventional loans), permit the seller to pay a percentage of the buyer’s closing & prepaid costs. Currently, FHA permits sellers to pay 6% of the buyer’s closing, escrow and prepaid costs. Specific rules apply for each type of mortgage. Using a seller assist can lower you cash at closing. Please visit my site for seller assist calculations, and contact a mortgage professional for the specific guidelines.
0 votes Thank Flag Link Tue Jul 14, 2009
FHA, VA, Fannie Mae and Freddie Mac (conventional loans), permit the seller to pay a percentage of the buyer’s closing & prepaid costs. Currently, FHA permits sellers to pay 6% of the buyer’s closing, escrow and prepaid costs. Specific rules apply for each type of mortgage. Using a seller assist can lower you cash at closing. Please visit my site for seller assist calculations, and contact a mortgage professional for the specific guidelines.
0 votes Thank Flag Link Tue Jul 14, 2009
Home Seller Assist is the program name of TV infomercial maker John Alexander ..... the FSBO seller uses an effective technique to get more qualified buyers quicker. This program works for homeseller ( even when they list on MLS ) buyers, RE agents, brokers, investors ... one of the perks being a loan commission fee when the loan is bought at closing from certain private lenders. More at http://www.SELLorBUYquick.com
0 votes Thank Flag Link Wed Oct 1, 2008
Seller assist is in three words A Wonderful Thing. Sellers assist is sort of a kickback from the seller to the buyer. Receiving seller's assist means that the seller is willing to help the buyer with closing costs.
Simply put, hope that was helpful.

Are you a first time buyer, what has been your experience?
I would love to hear about it.
email me at reneseatremax@hotmail.com if I can help.
0 votes Thank Flag Link Thu Dec 6, 2007
Hi Kristopher:

In the state of PA legally you are allowed to finance upto 6% of your closing costs. Depending on the lender and type of loan you are pursuing you may be able to borrow from 0-6% towards you closing costs. In the pa sales agreement you are adding this amount on to your offer and it is classified as a sellers' assit. They are not actually giving you this amount you are taking it to help for financing. Beware most sellers' will expect you to pay the transfer tax on this amount. Because you are the individual benefitting from it.
0 votes Thank Flag Link Sat Oct 27, 2007
Lamar-Potential Buyer

Linda this is the clearest idea of what seller's assist is. So in essence its asking the bank to finance the closing cost?
Flag Fri Nov 22, 2013
Hi Kristopher--Seller's assist is the amount the sellers are willing to pay for the purchaser's closing costs. Most lenders require that the property appraisal includes that amount above and beyond the property value. However, I work with a lender that will allow up to 9% seller's assistance, regardless of the appraisal. This gives my clients more options. Ask your REALTOR if they know of a lender in your area that will do the same. Good Luck!
0 votes Thank Flag Link Fri Oct 26, 2007
oops, sorry for the name spelling.
0 votes Thank Flag Link Fri Oct 26, 2007
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer