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Is it common that a home seller pay the buyers points 3%

by ireyna_932_906 from Munster, Indiana. Mar 8th 2013 Reply


James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

3% seller paid concessions toward closing costs and prepaids is prevalent throughout Northwest Indiana in today's market. Your REALTOR should have prepared you for this when you listed your home. Good luck on your negotiations.

Mar 8th 2013
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Lisa Schaerrer (Lisaschaerrer)
#34 ranked lender in Nevada - 4 contributions

There is no standard answer to this question. Often times first time home buyers only have enough savings to pay for their down payment and they will request seller concessions to cover the closing costs. Usually the buyers will offer a higher sales price in order to compensate for the sellers contribution to closing costs. For more information contact me through my profile or 435-313-7400.

Mar 8th 2013
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Florian Steciuch (RevereseMortgagePro)
#42 ranked lender in Indiana - 22 contributions

It is fairly common - it keeps the buyer's out of pocket cash lower. They can use the concession to lower their rate as well.

Mar 8th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

In my opinion seller concessions is relative to sales price. If you are given a 'low ball' offer then you are less likely to pay concessions. A full price offer would encourage you pay concessions to reduce the buyers costs. If a buyer doesn't have the funds to pay their own costs this is a reasonable offer for a successful transaction.

Mar 8th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Like others have stated it you get get closing costs in the negotiated contract and then you get to apply them how you want on the loan.

Mar 9th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,895 contributions

Yes, super common... So common that most Real Estate Agents in my area assume that every buyer is going to ask for 3% seller paid closing costs, so it is already built into the asking price. www.Minneapolis-Mortgage.com

Mar 9th 2013
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Jenny Baker (mortgagemom)
#72 ranked lender in Georgia - 26 contributions

Yes. It is also common for sellers to pay nothing toward closing or even a higher amount. From your question, I can't tell if you are a buyer or seller. I would advise to talk to your realtor either way and to find a mortgage consultant you trust.

Mar 9th 2013
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Mary Chris Gallo (MaryChrisGallo)
#48 ranked lender in Minnesota - 116 contributions

It is so common that I'm surprised when it doesn't happen. On occasion I do see a contract - where multiple offers were involved - that has no seller paid contribution.

Mar 9th 2013
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Tim Berry (timber1501)
#40 ranked lender in Indiana - 2 contributions

It is common for sellers to pay a percentage of up to 3% of closing costs and prepaids however it is not required. Take into consideration your list price, your particular market area, the length of time you have had your home on the market and how motivated you are to purchase a new home when deciding whether or not you will give concessions. The Sale and Purchase of your home is a negotiation that you control, be realistic in your expectations of the net proceeds you will receive and the total time it will take close your transaction. Feel free to call me if you have any questions on finance. 260-433-1260

Mar 9th 2013
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