Seller Assist Disadvantages

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Seller assist is part of a real estate selling agreement, where the buyer asks the seller for assistance with the transactions’ closing costs. The normal terms and conditions remain intact allowing the seller and buyer to create financial arrangements for completing the sale of the property. It can be confusing as a benefit for the seller and the buyer, but the mechanics actually work in the right situation.
The seller only agrees to the arrangement, there are no additional costs for the seller assist. If you’re a seller, don’t be surprised with a buyer asking for this seller assist. Your realtor will break the financials out for you to completely understand the process before agreeing to accept the offer. Keep in mind as the seller you …show more content…

Depending on the market conditions, sellers may also consider offering seller assist to potential buyers. The qualified buyer short of cash qualifies for a home loan that carries a portion of the closing cost as part of the sales agreement.
There are times when the buyer is approved for the loan amount, but putting down less than the normal twenty percent and wants to eliminate the need for private mortgage insurance (PMI). In this situation the seller assist may help the buyer, as long as the seller can bump up the contract sales price funding the difference for the down payment to avoid PMI using seller assist. It works is the home’s appraisal matches the adjusted loan amount.
Precautions
From the seller’s side, buyers short of cash for purchasing a home may be a risk to the home loan actually getting approval for financing. Typically seller assist agreements include minimum down payments, increasing the amount of the mortgage loan. For the buyer higher loan amounts convert into higher monthly mortgage payments, affecting financial qualifiers for the loan. For lenders, a higher mortgage loan means the property’s appraisal needs to support the amount financed matching the sales contract amount. Sellers inflating the property’s price against a lower market appraisal won’t get approval from the lender for the

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