What Is A Seller Concession?

A seller contribution is another incentive when purchasing a home. This takes places when the seller of the property promises money towards the buyer’s closing costs.

During the time of the purchase the buyer should not have to wait until the seller brings this option to the table. Be ready to ask and negotiate unless you prefer for the seller to lower the home sale price instead. The buyer must then calculate which is the most benefiting, the seller contribution vs. lower home sale price.

An inexperienced buyer can feel intimidated to initiate the subject, the best way is to ask the banker or mortgage broker to discuss this option. Some home buyers lack the sufficient funds for the home purchase. A seller contribution can make the major difference.

A seller will choose seller contribution for several reasons:

1. He or she brought another house and cannot carry the cost of two monthly mortgages.

2. Their employer is relocating him/her.

3. The seller needs the equity for an investment.

4. The seller’s home has exceeded the length of time on the market.

Benefits of seller contribution:

1.Buyer can place a larger down payment for a lower interest rate.

2.Eliminate the charge of Private Mortgage Insurance(PMI) if applied.

3.Buyer can focus on lowering their current debt and achieve a lower interest rate.

The seller must make sure that the exact amount agreed to contribute is in writing. To make sure there are no troublesome tax consequences check with the lender to be certain because of real estate laws varying state to state.

Wilda Escarfuller is a licensed Real Estate Agent in the state of New York. Her expertise has helped many home buyers to make the right decisions. She understands that while purchasing property is exciting it can place a series of consequences if one does not know the basics. Find more of Wilda Escarfuller’s useful info on: http://www.realestatewizard.blogger.com

Article Source: http://EzineArticles.com/?expert=Wilda_Escarfuller
Author Contact Info: Wilda Escarfuller

About Denay Trinidad

Real Estate is my passion and I hope to have the opportunity to help you sell or purchase Real Estate. You will benefit from my exceptional knowledge of the local market and my focus on finding buyers the perfect property or netting sellers the right price and in the right amount of time. As a Certified Previews International Specialist, I am very qualified to sell properties that fall under the Luxury market. Much of my business is from friends or referrals. I am loyal to my clients throughout the entire process, and remain loyal long after escrow has closed. I would love the opportunity to meet with you and help you find your dream home, investment or Sell your home with all of the creativity, determination and experience I have. Thank you!
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