Why would anyone advise a client to walk from an offer with cash back unless the net price was unacceptable? It’s completely legal to offer cash back to the buyer as long as it’s written into the contract and the lender is aware of it. When lender’s send back their approval conditions they will include a provision saying that sellers can offer a maximum of “X%” back to the buyer. I’ve seen 10%, 6%, 3%. Heck I’ve seen 30% on a $10,000,000 land purchase where the developer needed the money for entitlements.

The problem with working with Realtors is that most aren’t creative enough to get a deal done when confict arises so the easy thing to do is walk away. Realtors should spend a month working with a developer trying to purchase land and they’d gain a new appreciation for creative negotiations and financing. Most agents are so stuck in their ways that they automatically raise a red flag if they see something new. In the end it can hurt their clients’ bottom line.