Buyer/Seller Concession Cheat Sheet

This practical reference tool is designed to help both buyers and sellers navigate the complexities of real estate transactions, particularly in relation to financial contributions made by sellers on behalf of buyers. This cheat sheet outlines key information regarding different loan types (such as Conventional, FHA, VA, and USDA), covering essential details like:

 

Occupancy Property Types: Specifies whether the loan pertains to primary residences, second homes, or investment properties.

 

Down Payment Requirements: Indicates the typical down payment percentages required for each loan type, helping buyers understand their initial financial commitments.

 

Contribution Types: Describes what the seller can contribute towards closing costs, prepaid expenses, or other financial obligations, which can make home purchasing more affordable for buyers.

 

Maximum Seller Contribution: Lists the limits on how much sellers can contribute based on the loan type and terms, ensuring compliance with lender guidelines.

 

Buyer’s Agent Commissions: Broker compensation can be asked for with the purchase contract using the Seller Compensation Addendum and is entirely negotiable between the seller and buyer.

 

Payment for Commissions: Discusses how commissions can be incorporated into the overall sale agreement, providing flexibility for negotiations.

 

This invaluable tool for real estate professionals, buyers, and sellers simplifies discussions regarding concessions, helps in budgeting for a home purchase, and ensures that all parties understand their financial responsibilities during a transaction.

 

📆 Schedule time with me to address any questions and concerns about buying and selling residential real estate in the Valley of the Sun (Metro Phoenix). 🏠 We'll get you where you need to go! 🚀

 

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