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The seller is offering to pay up to $5000.00 of your fees, usually closing costs. Be careful with this, as many lenders are aware that seller concessions are often used to increase the sales prices, and thus with a goal of increasing the dollar amount of the mortgage for which the buyer will qualify. They put strict limits in response to this practice on available loan programs which specify the highest seller concession that they will allow. So, if you sign a contract that says that the seller will give a $5000 seller concession and the bank will only allow a $2000 seller concession, you may end up not closing, or being drawn into doing a deal on the side for the remaining funds, which would constitute mortgage fraud. Also, just because a house price is $5000.00 higher due to seller concessions, doesn't mean it is going to appraise at the sales price. Loans are based on the lowest of either the sales price or the appraisal price and appraisals are becoming drastically more legitimate. One more thing to remember is that if you are using realtors in your transaction, you may want to also consider having your contract reflect that the realtors will be paid based on the sales price minus the amount of concession, instead of letting them make commission on an inflated sales price. If you do not make sure that you specify this in the beginning, you will be over-paying for the oversight. I believe a big reason that realtors encourage a "seller's concession" versus a lower sales price is so they can retain a higher commission. Further, any home that you cannot afford to get a mortgage on within the perameters of the loan program, is probably a home you should pass on because it is a strong signal to buy a home you can more easily afford. Just ask anyone who is currently in foreclosure if they wish they had done just that.
What else can I help you with?
Is a seller concession the same as a seller contribution And do the agents lose some commission when there is a concession or a contribution?
A seller concession and a seller contribution are often used interchangeably to refer to the same practice, where the seller agrees to pay a portion of the buyer's closing costs to facilitate the sale. Typically, this does not directly affect the agents' commissions, as their fees are usually based on the sale price of the home, not the closing costs. However, if the concession reduces the net sale price significantly, it could indirectly impact the agents' commissions.
If in a market there is one buyer and many sellers then what is it called?
A buyer's market is when there are few buyers and many sellers. If the opposite is true, then it's called a seller's market.
How long after your new house closes do the sellers have to move out?
This is something that can be discussed during the drafting of the initial contact papers. Typically, the sellers must be out by the closing date.
What is place marketing?
It is a place where buyers and sellers meet and do transaction.
What are the benefits for sellers for directmarketing?
There are several benefits for sellers who choose the direct marketing route. Perhaps the best benefit is the lack of a middle-man, which means less money spent on marketing.
What is a good price for a used concession trailer?
For the average 12 ft x 7ft trailer it should cost you about $4000 - $5000 dollars. After researching on the internet, that is the average price of a concession trailer.
Can you get sellers concession on short sale?
Yes, but the amount of the concession depends on the type of short sale. An FHA Short Sale (under the HUD Pre-foreclosure Sale Program) can include up to a 1% seller concession only if the Buyer is utilizing FHA financing in the purchase. A HAFA Short Sale will allow a seller concession, but the amount depends on the proposed net proceeds to the mortgage servicer.
What does concession ticket mean?
This means that the holder of the ticket has the right to enter the area to see the show. It could also mean that the ticket holder has the right to get something from the concession (snack) stand.
What does concession mean in a marriage?
A concession is an understanding or agreement between husband and wife so they can make their marriage work, prosper, and last for many years to come. A concession can also mean tit for tat. The husband gives the wife something and the wife gives something to the husband in return.
What does Counter concession mean?
Counter concession occurs when one party responds to a concession made by the other party with its own concession, aiming to achieve a compromise between the two initial positions. It is a negotiation strategy where both parties adjust their demands to reach a mutually acceptable agreement.
Is it a good idea to do sellers concession?
How desperate are you to sell? It all depends on what is being asked, how much it will cost and whether you think the next buyer will make those same demands.
What did home theatre mean for the popularity of the cinema?
higher concession prices
What does Sellers mean in Hebrew?
If you mean people who sell things:male sellers (or a mixed group) = mokhrim (מוכרים)female sellers only = mokhrot (מוכרות)If you are talking about the name "Sellers":"Sellers" has no meaning in Hebrew because it's not a Hebrew name.
What is the past participle for concession?
Concession.
Sample letter on how to apply for a concession?
Concession letter
What does concession speech mean?
It is a speech made by a political when it’s clear he or she has lost an election. I think.
What does compromise mean and try to keep it simple?
Compromise means settling a disagreement by mutual concession.
