I’m not really calling you a dummy. This is my attempt at a very simplified explanation of what seller concessions are.
Example: You want to buy the house you just looked at and want to make an offer of $200,000. You need $5000 in seller concessions (seller paying all or part of your closing costs). Your offer will be $205,000 asking the seller to pay $5000 in concessions. If you offer $200K and ask for $5K in concessions, your offer is really $195,000.
The seller isn’t really paying your closing costs- you are mortgaging them.
Sellers- you really aren’t paying those closing costs. The buyer is mortgaging them.
Buyers- sellers have a bottom line. They don’t tend to come down to that bottom line AND pay concessions. The concessions are rolled into the purchase price.
Sellers- don’t question the amount of the concessions. If the buyer’s loan officer is over charging them that is their business. You only need to be concerned about your bottom line.
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