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What Is A "Seller Contribution?"
Question: What is a "seller contribution?"
Answer: A sale agreement typically includes both a purchase price for the property as well as terms and conditions. It sometimes happens that a buyer will make an offer subject to certain terms -- I'll buy your house but I want to keep the washer and dryer or whatever. One possible condition concerns "seller contributions." For example, I'll buy your house if you will pay the first $x of my closing costs. Lenders will generally accept seller contributions as part of a transaction providing they are written into the sale agreement, fully disclosed and only represent a limited fraction of the sale price. Different loan programs have different contribution caps. Lenders and brokers can provide specific advice. A seller contribution can be a useful bargaining chip in slow markets -- buy my house and you can have a credit of $x at closing. It's a thought that goes a long way with cash-strapped buyers.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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