Home Buying in 30126>Question Details

Pg, Home Buyer in 30126

When the seller offer a credit for closing cost , does the credit shows up in county's sales record?

Asked by Pg, 30126 Thu Mar 6, 2008

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Whether the credit for closing costs shows up depends on how the credit is applied:

1. If the credit is applied to the buyers costs of closing the sales price will likely remain the same and thus the credit will not be reflected in the sales price, which in turn may be recorded in the county records.

2. If the credit is applied as a price reduction to the sales price the price recorded at the county will be lower than the originally agreed sales price of the home.

Some lenders prefer to see seller credits handled as a price reduction rather than as a credit on the closing statement. A credit on the closing statement can raise questions about seller kick-backs and that can slow down or derail a loan.
0 votes Thank Flag Link Wed Feb 5, 2014
I agree, most of them do not. We as agents find out what the seller concession, or seller credit as you call it, once the property has been closed and noted on the MLS.
0 votes Thank Flag Link Wed Feb 5, 2014
Pg -
The below answers are correct and excellent answers! I can only add that as far as closing costs go, Realtors do have access to closing costs paid by seller information via FMLS assuming the property is listed there and the information is reported correctly.

When finding comps for clients I always include this information (as Joshua mentioned we are really looking for the NET to the seller). At this time, there is no way of knowing if the purchase price includes a down payment assistance program, if furniture or riding lawn mowers or any item of major value are included in this price. We can often at least look at the pictures to these comps and tell if the property has been updated or is more of a fixer upper.

So while the tax records do not reflect this information, a good Realtor can get an idea of the real numbers for you - Julie makes a great point of having your representative actually contact the listing agent on any comparable properties to get the real story whenever possible.

Best of luck to you!
Web Reference: http://www.leeadkins.net
0 votes Thank Flag Link Fri Mar 7, 2008
No, as Joshua mentioned, all that is recorded is the purchase price not the details of seller paid items for the buyer. Also closing costs are all the little fees associated with the transaction that add up (like escrow and title, etc.) and are normally paid by the buyer, unless requested that the seller contribute or cover those costs. If the buyer's agent "resolves" an issue along the way with a reduction or increase of purchase price, then this amount would be shown in the county's sales record. When an agent is doing a CMA for a client it is good to ask questions to the past selling and listing agent on a sold property to get the whole picture when determining value.
0 votes Thank Flag Link Thu Mar 6, 2008
Pg,

Most of the time, No.

What you are asking is the same age old question every good Realtor ask, "Why aren't we dealing with Seller Net? Instead, we have these crazy offers with 3% down payment assistance, and closing costs and decorating allowances. In the end, you have a puffed up sales price that may or may not be a true reflection of the value.

Just my two cents.
0 votes Thank Flag Link Thu Mar 6, 2008
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
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