what does"$1200 seller assit" mean when looking at real estate listings?

Question

i am a first time home buyer and need all the help i can get

Answer 1

Your best asset in your first time purchase is your realtor. If your realtor is not explaining a seller assist to you, and walking you through the various loan options out there, then he or she is not doing their job. Fire them! Get another realtor. And if you don't have a realtor, get one. Interview a few till you find one you are comfortable with. They are supposed to do a lot more than just drive you around to look at houses. Your realtor will be paid very nicely when you go to closing, and they get their commission. Make them earn it! Ask questions, make them explain things, and make them help you find the best deal for you.

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Updated:

Hi,

I think you really need a realtor. A lot of people like to go on their own and buy without an agent, to save the commision paid to the realtor, but it's not a good idea for a first time purchase. There's too much you need to know about the whole process to learn on your own.

To find a realtor, ask your friends, family, co-workers who have bought homes in the last few years who they would recommend and why. The "why" is pretty important. You want a realtor who explains stuff to you; them being nice is a plus but if they're nice and don't help you learn the process, you're not getting any value out of them. Interview 3 or 4 realtors, and pick the one you like the best. Then let them explain the whole process--- financing options (they don't make the loans so they don't care which loan you select, unlike mortgage brokers who get paid more if you pick a certain loan type), inspection, escrow, etc etc etc. Ask them to re-explain if you don't understand and if you don't think they are doing a good job, find a new one.

It's a very big and expensive decision. Done right, you're happy and hopefully make money on your home as property values rise. Done wrong, you're over-mortgaged or stuck in a loan where your rates may suddenly go up, broke, miserable. Let a professional help you.

I'm not a realtor but I had an awesome realtor for my first buy and it was worth every penny. And if you are looking in MD/DC I can refer you to an awesome realtor.

Answer 2

I'll expand on this by explaining. The $1200 is a seller's assist.

Let's assume that the house you are buying is selling for $40,000. (Did I just guess your sales price? Spooky!) You will have a Purchase Price of $40,000 but the seller is only going to walk away from the closing table with $38,800 ($40K less the $1200 assist).

The other way they may do it is this: Your Purchase Price will be $41,200. The $1200 goes towards your closing costs and the seller walks away with his $40,000.

Even though it's called an assist, what is happening here is that you are financing a portion of your closing costs. In the first way I mentioned, you are buying the house for less than its $40K value, therefore he's assisting you by selling you the house below value. The same thing happens in the second scenario because the house has to value at the $41,200. You're buying it for $40K, below its true value: Hence the name, seller's assist.

Best of luck

Answer 3

I believe it means they will provide $1200 towards your closing costs

Answer 4

Stinger is correct.
Good luck with your new home purchase!

Answer 5

Stinger is correct.