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Sellers Concession??

Original post by Suzanne

Anyone do this?

MarcellaBella Posted:

Re: Sellers Concession??

double post

Suzanne Posted:

Re: Sellers Concession??

This is horrible, i wonder why he would do this to us? He came highly recommended and everything. And this was the 2nd one we used... I have an appt. with the mortgage guy tomorrow night, i guess i have to find out why he would say this...
MarcellaBella Posted:

Re: Sellers Concession??

Posted by Suzanne

This is horrible, i wonder why he would do this to us? He came highly recommended and everything. And this was the 2nd one we used... I have an appt. with the mortgage guy tomorrow night, i guess i have to find out why he would say this...


Are you in contract already?
Suzanne Posted:

Re: Sellers Concession??

Nope. we are getting the house inspected tomorrow..

MarcellaBella Posted:

Re: Sellers Concession??

sh!t..

Suzanne Posted:

Re: Sellers Concession??

MarcellaBella Posted:

Re: Sellers Concession??

I'm hoping they say it's ok.. but you would know best whether or not these people would back out or come back at you with another number..

Suzanne Posted:

Re: Sellers Concession??

Im not sure they would come back with another number, because we couldnt afford to go any higher since we are doing the closing in the mortgage...

however, then if they say no I guess we will just do the 80 10 10 . I am going to be looking for some MAJOR answers when I go see this guy tomorrow. My husband says not to worry, but I dont want to fork over 500.00 for an inspection and then this all go kaput...
MarcellaBella Posted:

Re: Sellers Concession??

Posted by Suzanne

Im not sure they would come back with another number, because we couldnt afford to go any higher since we are doing the closing in the mortgage...

however, then if they say no I guess we will just do the 80 10 10 . I am going to be looking for some MAJOR answers when I go see this guy tomorrow. My husband says not to worry, but I dont want to fork over 500.00 for an inspection and then this all go kaput...


500! wow.. who the heck is finding you these people?!
N&L2004 Posted:

Re: Sellers Concession??

Suzanne,

I don't know if it will help, but we were planning on doing that and our mortgage guy told us we have to tell the seller because he has to put a higher price into the contract. Then the seller told us he can do it as a favor to us but we will have to reimburse him for the taxes he will have pay . We were totally confused by all that and decided not to get into it. I guess every mortgage company is different though.
Suzanne Posted:

Re: Sellers Concession??

Thanks N&L.. what did you decide to do?

Marcella,
How much is an inspection supposed to be? I used this guy once already and so has my cusin so I just figured I would go with it. But its about 470.00 with out the lead water test. Is that expensive? Most places I called were in that range....
N&L2004 Posted:

Re: Sellers Concession??

We are doing 80-10-10, so the part of 20% we originaly planned to put down going towards closing cost.

Suzanne Posted:

Re: Sellers Concession??

If the sellers consession doesnt work out we are going to do the 80 10 10 too...

sam Posted:

Re: Sellers Concession??

We wanted to do a seller's concession but the tax thing was an issue. If I have this correct, the seller has to pay taxes on the profit of the sale and 'raising' the price to include closing costs would raise the amount of the tax they have to pay. We had the closing costs but wanted that extra to do work on the house. In the end we did the 80/10/10. Good luck. Make sure you ask your mortgage guy a lot of questions -I used a notebook to document every phone call and conversation I had with anyone while buying our house!

yabbobay Posted:

Re: Sellers Concession??

you know what suzanne...don't let them bully you into a higher price...that is the price you think the house is worth...period...just b/c you have an extra $10K doesn't mean that you have to give it to them!!!!!

ETS: the seller only has to pay tax if they are not reinvesting the money...
Marcela1654 Posted:

Re: Sellers Concession??

Seller does always have to pay transfer tax though. I think it's 1% of the purchase price if under $500,000 or 1.425% if over $500,000.

Good Luck Suzanne!
Mandy77 Posted:

Re: Sellers Concession??

With a sellers concession, you have to tell the sellers that is what you are doing because they have to sign the contract for a higher purchase price. You agree on the selling price on the house and then write out the contract for the higher amount. Did you do this??

Also, when you are writing the contract through the sellers agent, they have you sign an agreement that state that they are working for BOTH of you...not just the seller...it is illegal to do that. They aren't supposed to tell the seller things they should here...for example that you can go higher in price...and they aren't supposed to tell you things about the seller...for example the fact that they will accept a lower price. However, some MEAN, DIRTY agents only want to get the highest price for their commission, which is illegal!!! I would be very cautious about it.

So here is my question: Do you have a contract written out for the higher price with a seller's concession?
casg Posted:

Re: Sellers Concession??

As long as the house gets appraised for the amount you offered and the amount of the conncession.

example:
house is 400.000 and you want a concession of 10.000 the house needs to appraise 410.000.
once its approved your realtor will send a letter to both attorney's that this is going to take place.
its very minor

my fingers are crossed that the sellers go for it
good luck

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