Copper Hill Real Estate

Seller's Assists Explained

Posted by Copper Hill on Wed, Dec 30, '20

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!


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