2 Very Important Questions Before My 1st Offer?
Hello I wanted to know if someone can refer me to an article, site, or has the time to explain a sellers concession and how I can maximize this to finance or absorb my closing costs on deals. Any examples are greatly appreciated.
Second question is with contingencies and clauses that I want to add on contracts is this something that is "frowned" upon or that people will resist to. Should I carry around and only make offers on a my own sales conracts with my verbage in place to create an "out" if need be or to assign the deal as a wholesale?
I appreciate any feedback as always. You guys are great and I feel a deal being funded before June. Need to get that 1st one off my back but it's gotta make sense. Thanks so much!
I would carry around and use my own contracts.
If you have one written to protect the buyer (yourself) I would use it.
I have found that most bankers and lawyers like everything clear cut- If you choose to add clauses and other items make sure they are spelled out completely so as not to confuse the seller, lawyers or the banks.
Seller concession is basically a money credit from the seller to the buyer. This is done at settlement. I believe (not absolutely sure) that lenders will allow a buyer to get a seller credit of up to 6% of the purchase price--can be a credit towards closing costs or for repairs, for instance. At closing, the amount of the credit is deducted from the seller's proceeds. Your purchase contract will need to include a provision for a seller credit--something like "At closing hereunder, seller shall credit buyer in the amount of X$."
thanks Nancy- that makes a lot of sense now
contingencies are not frowned upon. i have never made a contract without them. i "always" have a "escape clause" no matter how "solid" i feel the deal is. its like insurance to me. it gives me control of the deal. i'm the buyer i am in control and this is one advantage i have and i use it. i use the realtors contact they will not do anything that they can't write into their contract. if anything they frown if you don't use there contract. the conting. give me control of the contract and the realtor knows this via my "escape clause." i am paying them so i want them to do the leg work on the contract and write it the way i want it or i will not sign if the say "i can't write it this way" i say "great! i'll find someone who will." they always have they want the sell. good luck hope this helps....kenmax[ Edited by kenmax on Date 03/17/2004 ]