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HI!
First off, You and the seller have to come to a agreement on price. If the seller if willing to contibute $7,200 towards any of your pre-paids and closing costs that is great.. Remember the seller's agent must be specific to his seller in explaining to him that you will be borrowing $240,000 with the seller giving back to you $7,200 towards your pre-paids and closing costs. This means the seller in all reality will recieve
232,800.00 for his house.. But you are financing your closing costs.
How this should read in additional provisions in the contacts is like so.
Sale Price $ 240,000. with the seller contibuting $7,200 towards buyers pre-paids and closing costs. Hope I could be of help. and anwered your question.
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Seller concession?
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qbantek
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a. The seller expects me to ask a loan for $240 - whatever down payment and they will receive only ~$232800 because they will apply ~$7200 towards my closing costs. OR
b. The seller expects me to ask a loan for $240k + 3% - whatever down payment and they will keep the $240k and let me use the 3% towards my closing cost?
In case a) I would be asking for a smaller loan, purchase price will smaller, etc. Case b) it just sounds like I am financing my closing costs and the RE agents are getting a slightly higher commission because the purchase price went up (and so my taxes).
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