A buyer and seller's real estate agents will be able to fill them in on the laws in their particular state, but in general a seller is responsible for paying to fix
severe water damage or mold issues, to replace missing or broken smoke detectors, and to remedy building code violations
, among other things.
How do you explain seller concessions?
Seller concessions – also called seller assists or seller contributions – are
closing costs that the seller pays to help the buyer by reducing the amount of cash they need to close
. Seller concessions can be a way to lighten the buyer's load in buyer's markets, but are very rarely granted in seller's markets.
How do you negotiate seller concessions?
- Determine the state of the market. …
- Decide which concessions to ask for. …
- Give something in return. …
- Consider working with a real estate agent.
What should I ask seller to fix after inspection?
- Major electrical issues that are safety or code issues.
- Plumbing, drainage, sewer, septic, or water issues (or well water issues, if applicable)
- Mold or water damage.
- HVAC problems that affect home comfort.
- Leaking roofs or missing shingles.
- Termite and pest damage.
When can I walk away from home inspection?
Anytime you're not satisfied with the negotiations
after a home inspection, you can walk away from the home purchase contract.
How long are you liable after selling a house?
Normally a buyer would have
six years
in which to bring a claim against you, although in certain situations it could be three years from when the buyer becomes aware of a problem.
What is the difference between seller financing and seller concessions?
A sales concession is a contribution that reduces your acquisition cost as the buyer and might include personal property or payment of all or a portion of closing costs. A financing concession is a payment or benefit that acts as an incentive and may artificially increase the sales price.
What is the max seller concessions on FHA?
FHA guidelines allow for FHA seller concessions up to a maximum of
6% of the sales price of the home
. The seller concessions can be used towards all closing costs, lender fees, points, appraisals and any other expenses except for the down payment.
What does no concessions mean when buying a house?
Concessions
don't give buyers cash back at closing, nor can they be used to cover the buyer's down payment
. They're strictly intended to reduce what the buyer pays at closing. Read: Best Mortgage Lenders. ]
How much are closing costs for seller?
Estimated Closing Cost Amounts For Sellers
When selling a home, expect to pay
8% – 10% of the sales price of your property
in closing costs, with a good portion of this cost made up of the commissions paid to both your listing agent and the agent representing your home's buyers.
How are seller concessions calculated?
Seller Concession Limits By Loan Type
The lesser of the sale price or the appraised value usually dictates how much your seller can pay in concessions
. For example, say you offer $155,000 for a home. The home appraises for $150,000.
What are closing costs on a house?
Closing costs are
the expenses over and above the property's price that buyers and sellers usually incur to complete a real estate transaction
. Those costs may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges.
What are the biggest red flags in a home inspection?
Potential red flags that can arise during a property home inspection include
evidence of water damage, structural defects, problems with the plumbing or electrical systems, and mold and pest infestations
. The presence of one or more of these issues could be a dealbreaker for some buyers.
How do I ask seller to pay for repairs?
Instead of asking for a discount, you can simply
ask the seller to pay for the repairs
. This can either take the form of having the work done before you actually buy the house, or having the seller put the repair money into escrow so you can pay for the work after the sale goes through.
Can you lower offer after inspection?
You can realistically negotiate for anything after a home inspection
, but getting the seller to agree to your terms is the real trick. You will need plenty of evidence such as pictures and repair estimates, as often a seller will actually be unaware of the defect in question.
How do I know if my house is in good condition?
- 1) Exterior cracks and tilts. …
- 2) Ownership history. …
- 3) Look for water damage concealed by paint. …
- 4) Uneven or bouncy floors. …
- 5) Beware of room fresheners. …
- 6) Beware when music is playing in each room. …
- 7) Areas the seller won't let you see.
What can be negotiated after a home inspection?
- Hire an experienced real estate agent. …
- Only focus on the major repairs. …
- Opt for a credit or price reduction instead. …
- Think long term. …
- Provide supporting documents. …
- Ask for a home warranty. …
- Be reasonable.
Can you walk away after putting an offer on a house?
Can you back out of an accepted offer? The short answer:
yes
. When you sign a purchase agreement for real estate, you're legally bound to the contract terms, and you'll give the seller an upfront deposit called earnest money.
Can a seller back out of a contract if they get a better offer?
Not usually
. Real estate contracts are legally binding, so sellers can't back out just because they received a better offer. The main exception is when the contract includes a contingency that allows the seller to terminate the sale.
How clean should you leave your house when selling?
Generally, cleaning inside the property should include
cleaning windows, wiping down surfaces and cupboards, wiping skirting boards, cleaning bathrooms and toilets and hoovering throughout
. The garden, sheds and garages should all be swept and any windows cleaned. Leaving a clean fridge and oven is a very important.
Can a seller change their mind after accepting an offer?
Can you change your mind after accepting an offer on a house? As a seller,
you can always change your mind after accepting an offer on a house
, but unfortunately changing your mind doesn't guarantee you'll be able to back out of the agreement especially if a house purchasing agreement is in place.
Is a seller credit a selling expense?
Some closing costs are selling expenses (see below). Regarding the Seller Credit,
it depends on what it includes
. Usually a “credit” means that it's something provided/paid to you, not paid by you. You might want to confirm with the title company or real estate agent to find out exactly what that credit includes.
How do you ask for concessions?
Ask yourself, “Does it make sense for the house and the situation?”
Give some thought to the big picture. If you think a concession may be warranted, talk with your agent and get a second opinion. After all, this is precisely why you've got one on your team.
What are financing concessions?
Financing concessions are:
financial contributions from interested parties that provide a benefit to the borrower in the financing transaction
; payments or credits related to acquiring the property; and. payments or credits for financing terms, including prepaids.
Can seller pay off debt on FHA loan?
Seller concessions are limited to six percent of the sale price of the home and while the concessions can be used to pay some of a borrower's closing costs,
these funds can never be used as a down payment for an FHA mortgage
.
Is it hard to pass a FHA inspection?
To pass an FHA inspection, however,
your foundation must be free of significant cracks as well as ongoing water damage or evidence thereof
. If you have a crawl space under your home, it must have proper ventilation and be free and clear of trash and debris. FHA inspectors look up as well as down.
What does FHA mean for seller?
But as you go into the sale, you will need to determine if you are interested in receiving all types of offers, including those backed by FHA loans. For those that are not familiar with the term – FHA stands for
Federal Housing Administration
.
