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2. Looking for a Home >>
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The maximum Sellers Concession in CT will vary depending on the lender but generally it doesn't exceed 6% of the total purchase price and more usually it is between 3% and 4%. Today, again depending on the lender, this Sellers Concession may be used for both non-recurring and recurring costs which means it can not only be used to offset legal closing costs but also for pre-payment of property taxes in escrow accounts.
There are several situations when a Seller Concession may be considered. During the home buying process, a buyer should consult with a Mortgage professional for a review of his/her financial information. At that time, your Mortgage broker should be able to discuss options for loans as well as the down payment and closing costs. Typically for first time homebuyers, down payments and closing costs may be cause for concern. At this point, you may want to investigate 100% Financing and Seller Concession. For a Seller Concession, you would be asking the Seller of the property you are interested in to contribute a portion of the Sales Price toward the Closing Costs. This portion may range from 3% up 6% of the Sales Price. Your real estate agent would include this request into the binder or the contract when submitting the offer.
It should be noted that the Sales Price should not excess the List Price unless there is an over bidding situation on the home.
When do you see Seller Concession come into play?
There are several situations when a Seller Concession may be considered. Commonly, when a home has been on the market for some time, the seller may consider a Concession. The seller may be in a situation where he/she is on her way to a new home and needs to sell the home. Or you as the Buyer, are a very strong candidate with no home to sell. You can move faster that a person who is trading up. So a Seller Concession would be attractive. So for illustration, the Buyer offers a full price offer with the Seller contributing 5% toward Closing Costs. The Seller is still receiving an offer of 95% of the List Price, which may be in line with actual sales statistics for that Housing Market area.
So if you want more information about Seller Concession for your upcoming Purchase, complete the contact information. Our goal is to get you into your new home with the maximum savings and the best rate.