Sellers Assist is a way for the Home Buyer to include Closing Costs into their Offer and their Mortgage.
For instance, an FHA or USDA mortgage allows the buyer to include up to 6% sellers assist as part of the purchase price to cover many closing costs involved in a purchase.
Sellers Assist comes off the top of the Purchase Price.
So, for instance, if you offer $100,000 for home and ask for 6% towards the closing cost your offer is actually $94,000.
Offer to Home Seller = Purchase Price minus the Sellers Assist
The higher the amount of Sellers Assist, the harder to get the seller to accept the offer.
If your offer of $100,000 asked for 2% sellers assist then $2,000 would go towards buyer expenses and $98,000 would go to the seller for the home. This would definitely be a more acceptable offer to the seller of the $100,000 home.
In some situations, the purchase price is bumped up.
Mr Seller, I will give you $106,000 for your home but I need $6,000 towards closing costs. This is ideal for the seller because it gives them the $100,000 they want for the house.
Word of Caution: The house has to appraise for the purchase price!
In the above case, the house will have to appraise for $106,000 to make the numbers work. If the Home Doesn't Appraise and the home buyer NEEDS the Sellers Assist, the home seller may have to accept less to complete the sale of the house.
For all of your Lehigh Valley Real Estate Information, visit www.lehighvalleyhomesonline.com.