Can i offer Money to buyers for buying my house. For example: they buy at $158,000 and i give them $8000 at closing. can i also mention this in print ads? can the selling price be more than the appraisal?
2007-07-20 10:05:12 · 8 answers · asked by Big 2 in Business & Finance ➔ Renting & Real Estate
If it is documented on the HUD settlement statement and the money is being used for closing costs than the maximum you can provide is 3% of the purchase price if borrow uses conventional financing. If it is an FHA or VA Loan 6% or if it's a Subprime loan it will vary. However, if the money is for repairs that limit does not apply. If you are sending them a housewarming gift after the closing - no limit.
The selling price can not be more than the appraisal and YES please mention it in your print ads.
FSBO 3-2-2 $158K
WILL PAY CLOSING $
24 hr web tour & hotline
877-360-FSBO ID 727
http://HELPMESELL.com/727
If you are willing to pay an agent 3% the add one more line that reads BUYER AGENTS 3% (I recommend 3.5%)
2007-07-20 10:28:30 · answer #1 · answered by HelpMeSell.com 2 · 0⤊ 0⤋
If the selling price is more than the appraisal, the buyer is going to have to cover the difference.
I have seen several listings in my MLS that offer incentives to the buyer's agent, money for repairs to the buyer at closing with the appropriate offer, etc., etc.. I suggest in your ad that you give a $xxxx remodeling allowance to the buyer, or whatever allowance you want to call it.
2007-07-20 10:22:18 · answer #2 · answered by godged 7 · 0⤊ 0⤋
I believe you can offer money as an inducement to the buyer in cases where repairs are needed on the property and you don't want to spend the time and additional money to do them, so you offer X number of dollars to the buyer so that he/she can handle them instead. This happens sometimes when sellers are desperate to move and want to get rid of the property quickly. What the buyers choose to do with the money afterwards, is their business. This all has to be signed and agreed to. You should consult a lawyer who specializes in real estate since there are so many things that are not allowed legally.
2007-07-20 10:15:05 · answer #3 · answered by bombastic 6 · 0⤊ 0⤋
Yes, it is certainly legal to offer it, but the result might not be what you expect when an eventual buyer goes to seek financing for the property.
Lenders are wary of these 'cash back offers' and generally want a qualified and sensible explanation as to the reasons they are being offered. They don't want to finance a property at $158K knowing that the buyer will take away $8K in cash.
2007-07-20 12:40:04 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Yes, it is a RESPA violation (fraud). Taxes and the mortgage rates are based upon the sales price. Do it if:
1. You can find a closing agent to process the deal; AND,
2. You like the idea of spending time in prison.
2007-07-20 12:39:21 · answer #5 · answered by mcmufin 6 · 0⤊ 0⤋
you can give money back at the closing but dont advertise that. to atract more buyers, you may want to lower your asking price and be flexible with offers.
2007-07-20 20:00:50 · answer #6 · answered by sillybear 3 · 0⤊ 0⤋
Why might it particularly is unlawful to grant somebody a deal? as long as their sources isn't indexed on the industry, there is not any longer something unethical or unlawful approximately making an grant. occurs continuously. whether it particularly is indexed on the industry, you are able to desire to pass via a qualified real sources agent.
2016-10-09 03:31:51 · answer #7 · answered by ? 4 · 0⤊ 0⤋
no is not.... it is an incentive for your buyers....
good deal!!
2007-07-20 10:34:05 · answer #8 · answered by Sergio S 2 · 0⤊ 0⤋