Buyers / Mortgage / Sellers

Help with Closing Cost-Seller Assist

In a buyers market most of the offers include what is known as Seller Assist.  Typically most buyers will ask for between 3% to 6%.  Seller wonder why they should offer or consider seller assist.

What does seller assist do?  Seller Assist can applied to the help with closing cost like transfer tax, title cost, lender fees, and more.

Mortgage lenders will allow seller assist, but do not require the buyer having it.  As mentioned before a buyer can ask for in most cases up to 6% seller assist, or a buyer can ask for a flat amount.  The amounts are different for the type of loan you are using.  Check with your loan officer.

A seller can only assist up to the actual costs.  So if the buyer ask for 6% on $100,000 sales price, the seller would be giving the buyer $6,000.  The actual closing costs (not including the down payment amount) is $5,000.  In this case the seller would only be allowd to give $5,000 and not the $6,000 that was asked for in the contract.  If a buyer is doing a FHA mortgage they will still need to have 3.5% of their own money.

In today’s market, buyers market, sellers should consider all offers even ones with seller assist.  If you are to net $20,000, the seller could offer up to $20,000 seller assist without having to bring any money to the table.  Most lenders will only allow between 3 to 6% depending on the sales price and the type of financing.

If the buyer, agents, or lenders ask to increase the sales price to cover the seller assist, ask your agent to breakdown the the costs and your net to make sure it’s the best option for you.  Also remember it has to appraise for the higher sales price.


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