Cash Back
I would like some information on industry standards or legality of an offer that is above the asking price, where the buyer gets $X amount back at the close of the deal? I had been told once the it is common for an investor to ask for 6% above the asking price and I actually sold my own home to an investor in 2001 that way, but I have recently heard of an instance where the buyer/investor is asking to pay full price for the home and purchase it at some $200K above the asking price so he can get that money at the close of the deal. I would like to understand this process. I welcome all feed back on the topic.
i assume you mean appraise, not assess, and i believe there is a cap at 3% for seller concessions for homes that are securitzed through the government.
If the 6% is included in a phantom addendum to the purchase agreement and not provided to the lender or appraiser...mortgage fraud.
some lenders in single family homes will allow 103% or 106%. for commercial, no way.