Yes it will cost the buyer a bit extra each month to finance the assist amount over the life of the loan, but an assist is often the only way the buyer can purchase the property. If a seller assist is part of the transaction the total purchase price, including the seller assist, must have enough value to justify the sale price. The price of the home must appraise with the seller assist included. A seller assist can also be utilized to purchase mortgage discount points.
This is where the seller assist is used to buy down the interest rate. There are a few scenarios in which agreeing to concessions might make financial sense for a seller. If the seller is eager to get rid of the house, they could be more open to helping with your closing costs. Seller assist can also be used to attract potential home buyers.
Most times, a seller will help you out if your offer is at or above the listing price. Under these conditions, you, the buyer , have the power. Working with an experienced real estate agent who knows the local market can help you get the best deal. Since every case is different, you should discuss your concerns with a tax advisor who can give advice based on your individual situation.
Currently, the IRS only allows closing costs deductions on home mortgage interest and certain real estate taxes. However, the mortgage interest tax deduction includes mortgage discount points — money paid at closing to get a reduced interest rate. Let's take a look at the following example:. There are pros and cons to consider here:. Slight relative increase in closing costs indexed to sale price taxes, some fees.
Possible higher tax assessment and resulting higher property taxes. Enables more qualified buyers to make offers even if they don't have quite enough savings. Slight relative increase in closing costs indexed to sale price taxes, some fees, commissions.
0コメント