How Does Sellers Concession Work?

Answer

A seller concession is money that the seller pays back to the buyer to help with their closing costs. Essentially, depending upon the restrictions of the mortgage company, the buyer will borrow more money than they are paying for the house and get the difference back to help pay their costs. This happens at closing and is shown on the closing statement, or HUD1, as a charge to the seller and a credit to the buyer. This money goes to pay the buyer's closing costs only and usually can't be more than those costs, so there's no money back at closing.
Q&A Related to "How Does Sellers Concession Work"
A seller's concession can help a borrower who is unable to produce a down payment or pay for closing costs, but still afford the new monthly payment, to purchase a home. Typically
http://www.ehow.com/facts_6149017_seller_s-concess...
It works like this: suppose you agree on the price of the house at, say, $200,000. You then ask the seller for a 3% seller concession. What this means is that you add 3% to the price
http://wiki.answers.com/Q/What_is_a_seller's_conce...
Hi Bo, NRCC stands for Non-Recurring Closing Costs. These are costs that occur only once, like escrow fees, wiring fees. etc. Recurring Closing Costs are ongoing costs like HOA fees
http://www.trulia.com/voices/Financing/What_is_the...
Grants are not seller concessions. Down-payment assistance programs are not seller concessions either. For first time home buyers, a lender and real estate agent that work together
http://activerain.com/blogsview/1143508/understand...
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Seller concessions are a term used in real estate sales such as a home when you, the buyer, close on the final sale price. When you agree to concession sales, ...
A seller concession is defined as a business agreement between a conceiting buyer and seller. This agreement is drawn up to allow seller to pay up some or all ...
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