sellers concession question (insurance, condo, lawyer)

[lizherr98]

Hi,

My husband and I are first time buyers. We will be closing in our condo this Friday, and just found out that the final closing costs is less than the sellers concession amount. My question is where does the extra money from the sellers concession goes? I know that the buyer is not suppose to get any cash back from the seller, but then the money will go to the seller? I don't think the seller should get that money because we added the sellers concession amount on top of the original value of the property (we offered 239K for the condo + 11K sellers concession). Any information is helpful.
Thank you

[BobKovacs]

Typically, the lawyers will play games with the numbers, and come up with some "last minute dealbreaker item" that needs to be repaired. Instead of doing the repair, the seller will agree to pay you an amount that conveniently is equal to the amount that the closing costs come up short vs the $11k. Talk to your lawyer and RE agent about it- I'm sure this isn't the first time it's come up.

Bob

[Jim_H]

Typically your seller's concession can be used for "prepaids",these are the amounts you pay at closing for tax escrows,condo capital contributions,condo fee escrows insurance escrows,etc.