Several great points have already been made. I would also like to add that even when a person doing an FHA loan can come up with all the money necessary I have recommended asking for the assist anyway. When the buyer will have little money remaing after the sale, it is a scary thing. That money left in the savings or even checking account can make a world of difference when something unexpected breaks and it will. Buying a home is a great step toward financial security. One step I feel is just important is a 3 to 6 month emergency fund. By putting that 5-6 percent into an emergency fund will make the clients home purchase a better and safer investment.
Sellers assists are used typically when they are needed and not when they are just wanted. In my experience, a lot of buyers need some sort of sellers assist, but I always tell them that they are not getting free money from the seller. It is mortgaged and will affect their bottom line payment every month. My buyers who don't need a sellers assist don't ask for one. But my buyers who do need it, always ask for it and as long as the seller gets the price they want in net sale (what amount actually goes to them) then its usually granted.
Good Luck selling your home.
Coldwell Banker Preferred
223-225 Market Street
Philadelphia, PA 19106
If buyers want a house and can't come up with 20% down for a conventional loan, then they need to get an FHA loan for the most part. But there are those who want to get into a home yet only have a few % available. Just enough to get the loan yet nothing else to pay for closing costs. And getting seller's assistance to help cover the closing costs can make the difference of staying in a rental for another couple of years or living the American dream.
This is a good question. Yes, buyers really need the full seller's assist to close in the majority of situations. Sometimes it is even one of the conditions of the loan. Seller's are responding by tacking the amount of the seller's assist to the negiotiated or asking price in order for the deal to move forward. Let me know if i could assist further.
Keller Williams Realty
We recently did a deal and offered more than the asking price with a 6% assist. Its all a negotiation.
Coldwell Banker Realty Corp
215 735 0700
The sellers assist is becoming more prevalent in todayâ€™s market. It seems to be very popular with a lot of my first-time home buyers. It helps people with good jobs and a steady income to buy a house without a ton of money saved up. I refer to these people as "job rich, cash poor." This is just a quick way of describing someone with a good new job but not a lot of money in the savings account. Remember, the percentage is always negotiable if approved by the lender just like the sales price!
To Assist or NOT Assist...that is the question...but at the end of the day, what does it matter to you? If you get the $$ you want...your bottom line; and you only pay commission and transfer tax on your actual net, what you add on for the buyer shouldn't matter. You wouldn't have had that money anyway.
When explained properly, the seller assist can be a win-win for everyone. If you would like to chat about it, just let me know.
Good luck with all,
ReMax Action Realty
Ruth DiRienzo Whitehead
Keller Williams Real Estate
2200 Walnut St.
Phila, PA 19103