Buyer closing costs.

Asked by Privacy, Little Rock, AR Tue Dec 30, 2008

Can the seller raise the home price by 6% and give that 6% to the buyer to cover costs? Is this ethical, better yet is it legal?

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Steven Black…, Agent, Little Rock, AR
Tue Dec 30, 2008
If the property will appraise for enough to cover the increase then it is acceptable if it is part of the negotiations. The seller cannot "give" the money to the buyers, but rather they can agree to pay "up to" a specified amount toward the buyers costs involved in the transaction. Most loan types have specific limits as to how much in "concessions" that the seller can pay for the buyer. Most are either 3% or 6%.
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Dallas Texas, Agent, Dallas, TN
Tue Dec 30, 2008
Yes you can ask for seller consessions, lender needs approve the amount of % . Your mortgage broker can provide you info if there is a cap. Buyers agent completing your contract should submit sales offer based on loan officer recommendation.
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