Low inventory, elevated home prices, and high interest rates are making it harder to unlock the door to homeownership. Hopeful buyers often discover that the key to this door is getting past the upfront costs required to buy a house. For many, the solution lies in a “seller assist.”
But what exactly is a seller assist when buying a house, and how can it help clear the path on your homebuying journey?
In this post, we’ll provide clear insights and examples to help you decide if requesting a seller assist is the right strategy for your home purchase.
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What is a seller assist in real estate?
A seller assist, also known as seller concessions or seller credit, is an arrangement where the seller of a property agrees to cover part of the buyer’s closing costs. This can significantly reduce the amount of upfront cash a buyer needs to bring to the closing table, making it easier to afford a home purchase.
Closing costs can include a variety of expenses, such as loan origination fees, title insurance, and appraisal fees. By assisting with these costs, the seller helps to lighten the financial burden on the buyer, potentially making their property more attractive or enabling a faster sale.
In one recent report, it’s estimated that more than one-third of home sellers are giving seller assistance (concessions) to home buyers due to market conditions.
How does a seller assist work?
In a seller assist or seller concession, the amount the seller agrees to contribute is typically a percentage of the home’s purchase price and must be agreed upon during the negotiation phase of the home buying process. This contribution is then applied to the buyer’s closing costs, directly lowering the amount of money the buyer needs to pay out of pocket.
