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Permalink Reply by Alyce Nelson on March 27, 2011 at 6:42am

Good luck!  We've never seen a bank approve a seller concession (closing credit) for a cash buyer.  If it's a deal breaker for them have them have them lower their offer or convert to financing and then the concession has a better chance of being granted... typically up to 3%, though we do get them higher on occasion... so much depends on the investor and the margin of FMV to NET proceeds.... typically once that ration gets below 80% things start getting slashed, and the concession/credit is one of the first to go...  A cash buyer’s closing costs are usually pretty minimal…

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Permalink Reply by Bryant Tutas on March 27, 2011 at 11:55am

Why would a buyer want 3% in seller concessions? It's basically his own money.  It makes no sense to write adeal like that. The lender will reject it. Just reduce the purchase price by 3% and do the deal.

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Permalink Reply by Abraham Walker on March 27, 2011 at 12:14pm

I use this approach for cash buyers on foreclosed properties because some lenders will look at the closing cost in the same way that they do a reduction in the offer price.  Don't know if it would work for a short sale.

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Permalink Reply by Jeff Payne on March 28, 2011 at 3:20am

On a cash deal, the closing costs are not going to come anywhere near 3%.  What costs does the buyer want covered?  Inspection, survey, title fees, appraisal?  The buyers costs are minimal in a cash transaction, at least in the county that I am in because seller pays title and state doc stamps here.

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