You need to be careful on this. When you say the seller will give you 10k for closing costs, you are jeopardizing getting any additional credits for repairs that need to be made. Your lender will generally not allow you to receive more then 3% of the purchase price for the home. So you are already eating up 2.5% of that potential budget. What will you do if you find something that requires another $5000 worth of work? What about potential termite work?

This is a bit out of the norm because the seller generally is NOT the one encouraging this stuff. Usually buyers come in asking for credits for closing costs. Of course as you noted, EVERYTHING is based off of final sales price. So yes your property taxes will be a bit more. Personally if you have the money to pay for closing costs I am not sure why the seller is doing this. One thing does come to mind. Is this a short sale?

You need to be careful on this. When you say the seller will give you 10k for closing costs, you are jeopardizing getting any additional credits for repairs that need to be made. Your lender will generally not allow you to receive more then 3% of the purchase price for the home. So you are already eating up 2.5% of that potential budget. What will you do if you find something that requires another $5000 worth of work? What about potential termite work?

This is a bit out of the norm because the seller generally is NOT the one encouraging this stuff. Usually buyers come in asking for credits for closing costs. Of course as you noted, EVERYTHING is based off of final sales price. So yes your property taxes will be a bit more. Personally if you have the money to pay for closing costs I am not sure why the seller is doing this. One thing does come to mind. Is this a short sale?

You need to be careful on this. When you say the seller will give you 10k for closing costs, you are jeopardizing getting any additional credits for repairs that need to be made. Your lender will generally not allow you to receive more then 3% of the purchase price for the home. So you are already eating up 2.5% of that potential budget. What will you do if you find something that requires another $5000 worth of work? What about potential termite work?

This is a bit out of the norm because the seller generally is NOT the one encouraging this stuff. Usually buyers come in asking for credits for closing costs. Of course as you noted, EVERYTHING is based off of final sales price. So yes your property taxes will be a bit more. Personally if you have the money to pay for closing costs I am not sure why the seller is doing this. One thing does come to mind. Is this a short sale?

I have seen/heard the same thing on a lender owned. I am not sure how it works for them on their books to show that it sold at a higher price, but then kick back closing. I’m thinking there must be some accounting thing that benefits them somehow. Not sure. Was curious about it myself. I do know someone that was going FHA and the lender was going to pay closing, but then FHA required termite be remedied and the lender took care of that, too.

I have seen/heard the same thing on a lender owned. I am not sure how it works for them on their books to show that it sold at a higher price, but then kick back closing. I’m thinking there must be some accounting thing that benefits them somehow. Not sure. Was curious about it myself. I do know someone that was going FHA and the lender was going to pay closing, but then FHA required termite be remedied and the lender took care of that, too.