on an FHA loan will the concession by the seller be added to the sale price, or deducted from the seller proceeds?

Asked by Vinny, Hopewell Junction, NY Sat Jan 29, 2011

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Pat & Steve Pribisko’s answer
Pat & Steve…, Agent, Westlake, OH
Sat Jan 29, 2011
It depends on what is negotiated. Sometimes a Seller will accept an offer with a fixed purchase price and agree to the concessions as well. Other times a Seller will counteroffer with an increased purchase price equal to the dollar amount of the concessions. In addition, sometimes there is a negotiation where the Seller & Buyer end up with a combination of the two. Every situation is different. Every home is different. Every negotiation is different. Make sure you retain a good Buyer’s Agent to assist you in the whole purchase process.
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Sindy Verdugo, Agent, Long Beach, CA
Sat Jan 29, 2011
When you initially negotiate the sale and you ask for a credit from the seller, the seller will accept your offer or counter your offer. Once the sale is negotiated the terms are what they are and will not change.

At closing you will be given an amount to bring in to close the sale. You will bring in your down payment and closing costs minus your initial deposit and the seller credit.

You will see on your closing statement after the close the debit from the sellers proceeds and the credit on your side of the statement.

You may call me anytime, I have 31 years of exprience and a big heart.


Web Reference: http://www.SindyVerdugo.com
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Anna M Brocco, Agent, Williston Park, NY
Sat Jan 29, 2011
The concession will be added to the agreed sale price and then credited to you for your closing costs...your agent and or attorney can best advise--keep in mind that the property will need to appraise for the larger amount.
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