Ben Kayes Buyer Magazine RRG 2015 Buyer Magazine - Kayes, Ben | Page 15

Seller Concessions:
A Win-Win for Both
Buyers and Sellers!
AS A HOME BUYER, YOU SHOULD KNOW ABOUT SELLER CONCESSIONS,
ALSO CALLED SELLER CONTRIBUTIONS.*
HERE’S HOW THEY WORK:
An agreement can be made between you and the seller where the seller pays for certain fi nancing costs
on your behalf at closing. In addition to benefi ting buyers by helping to pay for closing costs,
concessions can be a good way for sellers to sell their home faster.
Seller concessions can pay
for closing costs including:
• Appraisal fees
• Attorney’s fees
• Loan processing fees
• Title insurance
• And more!
*Seller contributions are fi nanced over the
life of your loan with the purchase price, so
be sure to ask your mortgage lender if these
concessions are the right choice for you.
Source: Premium Mortgage Corporation
Home sale without a seller concession:
• A seller’s property is listed at $210,000 and a buyer off ers
$203,700.
• The seller accepts this price and the buyer’s fi nal purchase
price is $203,700.
When a contract includes, for example, a 3% seller
concession:
• A seller’s property is listed at $210,000 and the buyer off ers
this full amount with a 3% seller concession.
• The seller nets $203,700 ($210,000 minus $6,300 for seller
concession).
• The buyer purchases the home at $210,000 and receives the
$6,300 toward closing costs, basically fi nancing some of the
costs by paying the full asking price.