December 29, 2009...1:33 pm

What is a seller contribution (concession)?

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A sale agreement typically includes both a purchase price for the property as well as terms and conditions.  It sometimes happens that a buyer will make an offer subject to certain terms. (I’ll buy your house, but I want to keep the washer and dryer, etc.)  

One possible condition concerns “seller contributions.” (For example, I’ll buy your house if you will pay the first $x of my closing costs.)  Lenders will generally accept seller contributions as part of a transaction providing they are written into the sale agreement, fully disclosed and only represent a limited fraction of the sale price.  Different loan programs have different contribution caps.  Lenders and brokers can provide specific advice. 

 A seller contribution can be a useful bargaining chip in slow markets.  (Buy my house and you can have a credit of $x at closing.)  It’s a thought that goes a long way with cash-strapped buyers. 

A sale agreement typically includes both a purchase price for the property as well as terms and conditions.  It sometimes happens that a buyer will make an offer subject to certain terms. (I’ll buy your house, but I want to keep the washer and dryer, etc.) 

 

One possible condition concerns “seller contributions.” (For example, I’ll buy your house if you will pay the first $x of my closing costs.)  Lenders will generally accept seller contributions as part of a transaction providing they are written into the sale agreement, fully disclosed and only represent a limited fraction of the sale price.  Different loan programs have different contribution caps.  Lenders and brokers can provide specific advice. 

 

A seller contribution can be a useful bargaining chip in slow markets.  (Buy my house and you can have a credit of $x at closing.)  It’s a thought that goes a long way with cash-strapped buyers.

 

A seller contribuition is just one way that I use creative thinking to put deals together for buyers and sellers alike. This market and economy requires “out-of-the-box” thinking to survive. To see more examples of my creative marketing and sales techniques visit my site http://www.ForSaleByJeff.net or give me a call anytime at 989.494.1BUY (989.494.1289).

-Gotta Get Movin’

Jeff McIntyre
989.277.3510
Jeff@ForSaleByJeff.net
http://www.ForSaleByJeff.net

 Check out my new blog “Movin’ Shiawassee”  at  http://www.JeffMcIntyre.com
Follow me on Twitter! @forsalebyjeff


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