Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png What Are Seller Concessions In Real Estate? – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 17 Mar 2015 11:00:53 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 What Are Seller Concessions In Real Estate?[/caption] Whether you're selling your home or you're in the market to purchase a home, seller concessions are something you should be aware of and have a good understanding of.  Seller concessions effect both buyers and sellers, in two completely different ways. The easiest way to define seller concessions is a monetary contribution given by a home seller to a potential home buyer to use towards their closing expenses and prepaid items.  There are positives and negatives to seller concessions for a potential buyer as well as a home seller. What are seller concessions?  What are the positives and negatives to seller concessions?  What mortgage products allow for seller concessions?  Can I deny offering seller concessions?  Will the seller offer seller concessions? These are just a few questions that are fielded by real estate professionals regarding seller concessions.  Here is an in-depth analysis of many of the above questions to help you understand seller concessions and to also help you make an educated decision on whether seller concessions are necessary during your home purchase or sale. Mortgage Products Allowing Seller Concessions There are many mortgage products available for home buyers.  Many of which allow a buyer to purchase a home with little to no money down, mainly because the products allow for seller concessions.  Below are many of the mortgage products that are available to a home buyer that allow seller concessions. FHA Loans - Federal Housing Administration FHA loans are one of the most popular home financing loans out there.  Many first time home buyers take advantage of FHA loans for a few different reasons, one being the fact that FHA loans allow a buyer to receive up to 6% of a homes purchase price towards their prepaid items (taxes and/or insurance) and closing costs.  Another primary reason first time home buyers often take advantage of FHA loans, besides seller concessions, is the low 3.5% down payment. USDA Loans - United States Department of Agriculture USDA loans are another mortgage product that allows a buyer to receive seller concessions.  A seller is able to contribute up to 6% in seller concessions, just like FHA loans.  One difference between FHA and USDA loans and the amount of seller concessions that are allowed is that if a bank appraiser can determine concessions over 6% does not negatively impact value, there are cases a buyer is able to receive more than 6% in seller concessions. Conventional Loans There are many different types of conventional loans.  There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance.  A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.  If a buyer is putting more than 10%-25% down on a property, they are able to receive up to 6% in seller concessions.  If a buyer is putting 25% down or more, they are able to receive up to 9% in seller concessions. VA Loans - Veterans Administration VA loans allow a buyer to receive up to 4% in seller concessions.  There are also additional percentages that can be obtained by a buyer to help cover other closing expenses.  If you're a Veteran, it's best you discuss how much you can receive in seller concessions with a top rated local mortgage lender. In fact, during a recent closing in Penfield, NY, a Veteran buyer was able to receive over $10,000 in seller concessions on a home that was purchased for $150,000.  The Veteran only had to come up with very little of their own funds to purchase the home. [caption id="attachment_2541" align="aligncenter" width="450"]Don't Be Greedy & Ask For Seller Concessions Unless Necessary! Don't Be Greedy & Ask For Seller Concessions Unless Necessary![/caption] Do You Really Need Seller Concessions? This is a question that can only be answered by a potential home buyer.  Before thinking about asking a seller to contribute towards closing costs and prepaid items, it's important a buyer determines if they truly need seller concessions.  Most people don't like to deplete their bank accounts purchasing a home, which is understood, however if you don't really need seller concessions, don't ask.  Why wouldn't you want seller concessions? The biggest reason you shouldn't ask for seller concessions if you don't need them to purchase a home is the fact you will be paying more for a home when receiving seller concessions than you would if you weren't asking for them.  For example, if a seller agrees to contribute 6% of the $200,000 purchase price, the buyer would be purchasing the home for $200,000.  The buyer would be receiving $12,000 in seller concessions, therefore in theory, they could offer $188,000 for the home and the offers would be similar to a seller.  The difference for a buyer in this example is they would be paying roughly $70-$80 more per month on their mortgage and the interest that would accumulate over 30 years is quite significant. There is no doubt that seller concessions are very important to the real estate industry and allows many home buyer's the ability to purchase a home.  This does not mean seller concessions are something that every buyer needs to ask for, bottom line, if you don't need the seller concessions, don't ask. Multiple Offers & Seller Concessions Asking for seller concessions can be a costly mistake for some home buyer's in a multiple offer situation.  There are several things that a buyer can do to help win in a multiple offer situation.  Not asking for seller concessions is one way to strengthen an offer.  If there are two similar offers on a property, one offer asking for seller concessions and one offer not asking, it's extremely likely the buyer not asking for seller concessions will win. Why would a seller want to take one offer over another because the buyer isn't asking for seller concessions?  One of the biggest reasons is that a buyer who is asking for seller concessions versus a buyer who isn't, must not have as much money saved for a home purchase.  In many cases this can indicate to a seller that, in theory, the buyer who doesn't need seller concessions is a stronger buyer. The True Seller Net Proceeds Seller concessions are able to help a buyer purchase a home but remember, what is offered is not what the seller will truly net.  Buyer's need to keep in mind when asking for seller concessions how it will effect the seller's bottom line. For example, if a home is listed for $100,000 and a buyer offers $100,000 and doesn't ask for any seller concessions, the net offer would be $100,000.  If the same home owner receives an offer for $100,000 from a buyer who requests 6% in seller concessions, a seller will not view this as an offer for $100,000 but rather an offer for $94,000 after subtracting the $6,000 they will be contributing in seller concessions. [caption id="attachment_2543" align="aligncenter" width="450"]Seller Concessions Can Create Low Appraisal Problems! Seller Concessions Can Create Low Appraisal Problems![/caption] Potential For Low Home Appraisals In the above example of the homeowner who had their home listed at $100,000 and received the net offer of $94,000, could the offer be countered even though the offer price is full price?  The answer is yes, however, it does come with some added risks for the seller.  It's fairly common that when a buyer needs seller concessions to be able to purchase a home, they offer more than the asking price.  This can help increase the seller's net proceeds.  If the buyer who offered $100,000 and asked for 6% in seller concessions offered $105,000 and asked for 6% in seller concessions, the net is different.  The seller would be looking at a net offer of $98,700, which is a considerable difference from $94,000. This sounds great for the seller, right?  Wrong.  Potentially a problem could arise during the transaction with the home under appraising.  If the seller's home was priced right and the purchase price had to be raised to help increase the seller's net, it can actually push the sale price higher than a bank appraiser can substantiate.  Challenging a low real estate appraisal is not an easy task and in many cases, is unsuccessful. Final Thoughts As mentioned above, seller concessions are an absolute necessity for the real estate industry.  Without seller concessions, the industry could potentially take a crushing blow, for the worst.  There are certain circumstances where asking for seller concessions makes perfect sense for a buyer and other circumstances where it makes absolutely no sense. The biggest thing to remember about seller concessions when buying a home is, if you don't need them, don't ask for them.  For a seller, remember, that without seller concessions, the potential buyer pool would be substantially smaller and you may not be able to sell your home.  If you choose a top Realtor to represent your best interests, they should be able to discuss with you both the positives and negatives to seller concessions. Other Top Real Estate Resources For Home Buyers & Sellers Whether you're thinking of selling a Rochester, NY home or considering a Rochester, NY home purchase, you should understand what seller concessions are and what effects they can have on both buyer's and seller's.  The above information should help you understand both the positives and negatives from both perspectives.  If you're searching for a Rochester, NY Realtor who has experience dealing with seller concessions, contact me, as I'd love to explain how my expertise can make your home negotiations smooth and relatively stress free!
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "What Are Seller Concessions In Real Estate?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>