Seller credit to buyer (loans, real estate, fee, financing)

[darkblue]

I am planning to sell my house in Virginia Beach. Is it mandatory to pay seller credit to buyer? Listing Brokerage fee, Selling Brokerage fee and sellers credit buyers adds up to $30000 where I will be getting $30,000.00 as sales proceeds. That does not even make me break even considering how much I have put on my home in all these years.

[FalconheadWest]

Beyond typical seller closing costs that all sellers need to pay in order to sell a home, everything else is negotiable. Sellers never "pay" for a buyer's closing costs. A buyer "finances" their own closing costs as it's in the price of the home. If you want a certain net, and a buyer asks for closing cost help, you raise the price of the home to cover it for the buyer's financing.

FYI, if you do a basic search on this forum, you'll see this discussed many times and you'll get further details about how the buyer is financing the money, not the seller paying it.

[jackmichigan]

Originally Posted by darkblue

I am planning to sell my house in Virginia Beach. Is it mandatory to pay seller credit to buyer? Listing Brokerage fee, Selling Brokerage fee and sellers credit buyers adds up to $30000 where I will be getting $30,000.00 as sales proceeds. That does not even make me break even considering how much I have put on my home in all these years.

Although some closing costs are typically paid for by the Seller, you are under no obligation to pay any of the costs which a Buyer would normally be required to pay. To make a sale, however, everything can be negotiable.

[SmartMoney]

As stated, you are not obligated to offer any buyer credits, but in an area where seller credits are the norm (heavy VA purchase population), you may have a tough go selling if you continually strike it from every offer. The question then is can the (likely VA) appraisal support the price you expect plus closing costs.

Hopefully, you have (or had) a Realtor that gives it to you straight without mincing words.......It's not the buyer's problem what you net and if they need help (closing cost assistance) and you say no, they move onto the next property (unless there is something really great about your home). If the market value is $XXX and you add 10K for closing costs, that home must appraise for whatever $XXX+10K equals. If the appraisal is low, unless you come down in price (because the buyer likely will not have funds), you've got another month's mortgage payment and a home to sell again and the buyer is out $400 + the home inspection. This is why real estate gets such a bad name - everyone can tell you what is likely to happen......Some may actually tell you, but you go on to the next person. They get your listing because they don't share their crystal ball. And 30 days in, you find yourself stressed out and facing a low appraisal and a buyer ready to walk. That 2nd agent is banking on you having so much vested, you will find a way to make the deal work.

You need an experienced agent in your market to tell you the market value. Right now, an agent giving you a false high market value will do you no good - just the opposite. The listing research will tell you what other sellers paid and how much sales were without any assistance. If you are in a hot market, low inventory and sales moving, no closing costs paid will be expected. What is happening right now is important.

One more note - if a VA appraisal is done on your home, that value is attached to your street address for 6 mos (it may have dropped to 4 mos, I stopped doing VA loans 2 years ago). You are stuck with an FHA value for 4 months - this is even if the original buyers walk from the contract for low value - no one will get a higher value for several months)