Allowable Costs paid by Seller Concessions

By
Real Estate Agent with Tierra Antigua Realty SA624527000

Seller concession are usually either a percentage of the sales price or a flat dollar amount. These dollars can be used to pay a buyer’s closing costs (the cost for the buyer to obtain finacing) and pre-paid items up to the maximum limit allowed by the loan program. They cannot be used to pay any part of the buyers minimum cash investment for down payment. Neither can they be used to pay any items that are construed as sales inducements, such as personal property, paying off a buyer’s debts or pre-payment of any future obligations, such as mortgage payments or HOA fees. Any unused seller concession goes back to the seller so be sure to consult with your loan officer to determine the correct amount of seller concession needed for the buyer.

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Rainmaker
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Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

I recommend this blog for a feature. Great stuff. Thanks for sharing.

Jan 20, 2016 08:17 AM #1
Rainmaker
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Joan Dickie
Keller Williams Premier Realty - La Crosse, WI
Keller Williams Premier Realty

One does need to be careful.  Could an agent write in the contract that the unused portion be used to purchase discipline points for the buyer?

Jan 20, 2016 09:01 AM #2
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Rainmaker
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Spirit Messingham

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