Buyer Credit and Seller Concessions The Get Rich Slow Podcast

Buyer Credit and Seller Concessions
 
Tune in today as Adrian, Rob, and Lance talk about buyer credits and seller concessions. We’ll dive into what these are and how you can leverage them to your advantage in your next real estate transaction.
 
Seller Concession Caps 
Conventional Loan for the purchase of a Primary Residence
Less than 10% down - 3% of purchase price
10% or more but less than 25% down - 6% of purchase price
25% down or more - 9% of purchase price
FHA or USDA Purchase
6% of purchase price
VA Purchase
4% of purchase price
 
(confirmed May 2023 - subject to change)
 
Links & Resources Mentioned:
Referenced Article: https://www.realtor.com/advice/sell/what-are-seller-concessions/
ROI Disclosures: https://tinyurl.com/msywepvw
Adrian Schermer @ Directors Mortgage: https://www.directorsmortgage.com/loan-officer/adrian-schermer
Rob Delavan @ Delavan Realty: https://delavan-realty.com
Lance Johnson @ ROI Financial: https://roi-fa.com
Events: https://roi-fa.com/events
Transcript:
Adrian Schermer:
Hello future millionaires and welcome back to The Get Rich Slow Podcast. We are your hosts, Adrian Schermer, Robert Delavan and Mr. Brilliant at the basics, Lance Johnson. Good morning gentlemen!
 
Robert Delavan:
Good morning, happy to be here.
 
Lance Johnson:
Good morning there, Adrian. Good to be back. Back in the saddle
 
Adrian Schermer:
Yes, back in the saddle. You can watch The Get Rich Slow Podcast, or I should say you can listen to it on Apple Podcasts, Spotify, Audible, Amazon Music, as well as a few other platforms that are smaller. We are also on YouTube if you'd like to see the video, and you can follow along with the presentation that we have with some slides showing what we're attacking. And today, this week, we're gonna talk about some... seller credits and I want to start this off by talking about a big win I had with Rob's team. We were doing a purchase. We had a first-time home buyer, which is always awesome. They really wanted to have a seller credit to assist them with closing costs. We've talked about this before, you've got your down payment, but seller or closing costs can be something that especially first-time home buyers don't necessarily expect and it's great if we can have the seller pay for that. We're going to chew into that a little bit more in the episode. But in this particular case, we had someone with an accepted offer. It had a $10,000 seller credit on it. We actually got a little bit more because of some needed repairs on the property after the inspection, which…
 
Robert Delavan:
Mm-hmm.
 
Adrian Schermer:
…is a whole episode on its own. But the property still also appraised for 10,000 over the contract price.
 
Robert Delavan:
Mmmhmm.
 
Adrian Schermer:
And we'll dig into this a bit more what that really means, but I'll tell you, the end result is that this client effectively won $20,000 thanks to excellent negotiation and just the way that seller credit works you know? They bought the house, the seller paid for $10,000 of their closing costs, and it's still appraised for over.
 
Robert Delavan:
That was a killer deal, and we can use the term “won”. I prefer to say that it was leveraging what the market will allow right now. And this is winner 2023 so... But yeah…
 
Adrian Schermer:
Mm-hmm.
 
Robert Delavan:
…it was a total win. I mean, the clients were ecstatic with getting a new house and having less cash out of their pocket through this process.
 
Lance Johnson:
And just think about it a year ago, you know, interest rates are down coming out of a great market during a pandemic, which, whole separate episode.
 
Robert Delavan:
Mm-hmm.
 
Adrian Schermer:
Yep.
 
Robert Delavan:
Mm-hmm.
 
Adrian Schermer:
Yep.
 
Robert Delavan:
Right.
 
Lance Johnson:
And people were paying 150,000 over asking price, having to come in with money because it wouldn't appraise, and you feel like