In today’s unpredictable Crescent City real estate market, sellers and buyers are willing to work together and make compromises to make the real estate transaction occur.  Without reasonable compromises between home sellers and home buyers in today’s real estate market, not many real estate transactions would be taking place and properties would be on the market longer than they should be. 

One of the compromises a seller can make is to pay for the buyer’s reoccurring and non-reoccurring closing costs up to 3% of the purchase price.  (The lenders will not allow for more than 3% of the purchase price.) Sometimes buyers can barely qualify for the purchase itself, the home could be their first home purchase, and they do not have the enough savings to cover both the down payment and the closing costs.  So if more and more sellers are able to contribute that 3% of the agreed upon purchase price, they can actively make the sale happen instead of not making it happen and then having to wait for the next qualified buyer, which in this market, is hard to come by. 

I have been involved with about three of these seller contribution sales in the past year and I have been on both ends of the deal, the buyer asking for that seller contribution and the seller having to pay that contribution.  Today I put in two separate offers for home purchases that require the seller to contribute up to 3% of the purchase price towards the buyers reoccurring and non-reoccurring closing costs.  If the respective sellers agree, then we have a deal.