Profile picture for jrtpapa

Seller-assist language: how would most listing agents interpret this?

Suppose an offer comes in for "$x with a $y seller assist". Which of the two interpretations below best represents yours?
1) The seller will net $x-$y (pre-commission)
2) The seller will net $x (pre-commission) because the buyer will add the $y to their mortgage and the house price will be $x+$y
  • May 10 2012 - Glenside
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Answers (12)

Best Answer

Profile picture for nwhome.us
Option 1)
  • May 10 2012
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Profile picture for JimTrueblood
The only thing that matters is the net sales price to the seller.  Purchase price less seller closing cost help to the buyer.  Commissions are always paid off the agreed PURCHASE PRICE, not net price in our area.  You can always discuss that with your agent.
  • May 11 2012
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Profile picture for jdaywalt
If an offer comes in for $100,000 and there is a request for $5,000 Seller's Assist then I present that to my clients as the first one - they would net, in this scenario $95,000.  That is exactly what it is.  The fact that the buyer is paying $100,000 for the house with an assist has nothing to do with the net proceeds for the seller.

When speaking in mortgage terms, which then is speaking about the buyer, they are financing the closing costs into the mortgage.  I'm not sure there is any other way to accomplish the goal of receiving a Seller's Assist as money can not change hands at a settlement, before or after a settlement, unless it is on the HUD.  The buyer could simply offer $95,000 and pay their own closing costs without assistance from the Seller and then they would not be financing any costs.
  • May 11 2012
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Profile picture for jrtpapa
OK this confirms that there is ambiguity in this, that the offer should say what TYPE of seller assist is being offered. Hopefully some readers have benefitted and less confusion will result.
  • May 10 2012
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Are you sure that the seller sees things your way?

  • May 10 2012
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Profile picture for jrtpapa
my original question had been about listing agent interpretation. the backstory was a lender's interpretation
  • May 10 2012
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Now I'm confused! Who's doing the interpretation - the listing agent, or the lender?

  • May 10 2012
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Profile picture for jrtpapa
Mack. Yes, you can just call. Would be easier if there were standard langugage for these two types of seller assists. #1 is I bet the way most agents will think about it. #2 is just the buyer financing their closing costs.

I'm a buyer and had a lender assume that I wanted to do #2. I wonder how many buyers think they are offering #1 when their lender thinks they are offering #2.
  • May 10 2012
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Whether the commission is paid on the sellers net or the amount before the sellers assist can be negotiated with the agent selling the home.

Ideally a seller would want to be paying commission on the net proceeds (after the sellers assist is deducted from the sellers gross proceeds)
  • May 10 2012
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What about calling the selling agent and asking them?
  • May 10 2012
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Profile picture for jrtpapa
So should the seller expect to net $x-$y, or $x? (all pre-commission)
  • May 10 2012
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My guess is the buyers are asking for closing costs to be paid by the seller (the seller assist part). The $xxx.xx would be deducted from the sellers proceeds at closing and credited to the buyers on the HUD1 to cover their closing costs (the balance of their closing costs would probably come out of the buyers pocket).
  • May 10 2012
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