Falling in love with the picture perfect home you found online while scrolling through endless listings is the easy part of purchasing a property. Making the down payment? That’s a little tougher.
Forgetting the closing costs? That’s a serious mistake.
For homebuyers who’ve found the home of their dreams, money can be an inconvenient obstacle. Whether the buyer seeks a conventional loan, an FHA loan, or another type of creative financing option, scraping that money together can be tough. In this situation, it’s wise to ask about a seller’s assist.
In short, a seller’s assist is a kickback from the seller to the buyer that’s processed at the time of closing. While a buyer might well have enough money to cover the monthly mortgage payments, the down payment is often what can trip up a prospective purchaser of a home.
The seller’s assist provides funds back at closing time to make the closing process a bit easier on the buyer. The percentage of money that can be provided varies slightly depending on the home, but it usually maxes out at about 6% of the total cost. If done correctly, the seller’s assist can make paying closing costs and down payments a bit more affordable for the buyer.
While it sounds like it’s solely beneficial for the buyer, the seller can benefit from this offer, especially in a market in which they’ve struggled to field competitive offers for their property.
Let’s say you’ve found a home you love that’s listed at 300k on the open market.
With the seller’s assist in mind, let’s go on and say you’ve made a full price offer, but with the knowledge that you’ll be asking for 6% back. To the seller, the offer they’re seeing is not 300k, but 282k; in a market and area where the average home is selling for less than 94% of the asking price, this offer, even with the seller assist, is beneficial for the seller.
The ability to obtain a seller’s assist is highly dependent on the type of loan being sought, the willingness of the seller to accommodate, and the negotiating ability of the buyer’s agent. Curious about how a seller’s assist can help you? Reach out to us!