Home Buying in Tracy>Question Details

Amy, Home Buyer in Tracy, CA

Do you ever give your buyers credit, like 1% towards closing costs? Why or why not?

Asked by Amy, Tracy, CA Tue Jul 10, 2012

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Answers

8
Who is "you"?
If "you" is me as a broker crediting part of my commission towards my client's closing costs - no, I never do that. I charge a fair price for my services, period.
If "you" is my seller client, that is completely up to them and I have no control over that at all. But I never recommend that the seller cover any of the buyer's closing costs unless it is in return for concession on another negotiating point that is in my client's best interest.
As far as using an elevated sale price as a tool to finance closing costs as mentioned by Suzanne, I would never take part in that. If the buyer can't afford to pay closing costs, they probably can't afford to buy the home in the first place and should look for something with a lower price.
1 vote Thank Flag Link Tue Jul 10, 2012
Darren, as stated here - if YOU is the seller it's up to them. If "YOU" is the me the broker, then the answer is NO. I have bought buyers a Home Warranty as a closing gift. I'd be cautious working with someone who so willingly gives up their income. How hard will they work for you to get the best price possible?
0 votes Thank Flag Link Wed Aug 22, 2012
Yes, I've given my buyers credits toward closing costs up to 2% for the purchase of my properties. Then again, that's rolling into the purchase price.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Tue Jul 17, 2012
Like . . . 1/3rd off of the commission?
0 votes Thank Flag Link Mon Jul 16, 2012
Yes.

Taj Weldon
209-740-4176
REALTOR (R)
DRE 01816152
tajweldon@connectrealty.com
http://Www.TajCanHelp.com
0 votes Thank Flag Link Mon Jul 16, 2012
In a competitive market, anything you ask of the seller may weaken your offer compared to other offers. This is where a good agent will obtain a better understanding of the seller and their position in order to obtain what's needed. For example a VA loan requires that the sell contribute to cost not normally paid by sellers. This significantly weakens a VA offer; however, there are certain tactics you can deploy to get the offer accepted.

I hope this helps,

Rocky

Rocky G.H. Hawrysz | Prudential California Realty
(209) 444-6610 – Direct | Rocky@PruCalifornia.com | http://www.TeamHawrysz.com | License No. 01468373
“Without Question, Committed to Your Success!"
0 votes Thank Flag Link Tue Jul 10, 2012
It's done all the time. It's called a seller's concession. We use it to cover closing costs when a buyer has the down payment but is struggling to come up with closing costs as well. We generally raise the purchase price of the home but specify that the commission is on the lower amount, to account for the concession. The only thing is, the house has to appraise for the increased amount. It's actually an excellent strategy to get buyers into your home, especially first time home buyers whose funds may be somewhat tight.
0 votes Thank Flag Link Tue Jul 10, 2012
Hi Darren... Are you asking if sellers typically give buyers credit for their closing costs? If so, then the answer may vary. It all depends on which market area you are talking about and also what the trend is in that market. Closing cost credit is completely negotiable. Currently in Tracy it is pretty common to see sellers offering 3% credit back to the buyer. Most of the time it is given if the buyer has very little down payment and is obtaining FHA financing. Short sales usually cap the closing costs at 3% to an FHA buyer if they allow it at all.
You also asked why... One reaaon is that it is common. Other is that buyers (especially FHA first time homebuyers) can usually only come in a down payment and they cant afford the closing costs. This is a way for buyers to get into a home.

If you are shppping for a home in Tracy And already have an agent ask them about how to structure your offer so you can ask for the credit without going below the the amount the seller listed the home for. If you need an agent or just need some advice or guidance feel free to contact me.

Thank you!

Alvena Maryam Safar
Broker
CalPrime Realty
Office (209) 622-0769
Mobile (209) 612-8109
eFax (866) 458-0798
3430 Tully Rd. Unit # 57
Modesto, CA 95350
DRE# 01509140
maryam311@aol.com  http://www.CalPrimeRealty.com
0 votes Thank Flag Link Tue Jul 10, 2012
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