It works like this: suppose you agree on the price of the house at, say, $200,000. You then ask the seller for a 3% seller concession. What this means is that you add 3% to the price of the house. That's right, you're now going to pay $206,000 for that house -- but the seller is going to give you that $6,000 back when the sale takes place. You're going to use that money to cover all of your closing costs.
It is also a term that can be used for a selling venue at a fairgrounds, amusement park, etc. (concession stand)
is seller concession a tax deduction for me the seller
Under Amount Paid by or in Behalf of Borrower.
Yes, but the amount of the concession depends on the type of short sale. An FHA Short Sale (under the HUD Pre-foreclosure Sale Program) can include up to a 1% seller concession only if the Buyer is utilizing FHA financing in the purchase. A HAFA Short Sale will allow a seller concession, but the amount depends on the proposed net proceeds to the mortgage servicer.
At the closing table when all funds from the sale/purchase of the home are exchanged.
Seller-paid concessions, when used properly, can mean the difference between closing a home sale and losing one. A concession is anything of value added to the transaction by the seller, builder, developer, salesperson or any interested party. A concession may also include any closing costs that would normally be paid by the buyer or cash given to the buyer to lower non-housing debts. Funds received from a relative to assist with a home purchase, or cash contributed from an employer as part of a corporate transfer are not considered seller concessions.
is seller concession a tax deduction for me the seller
It is legal, and depending how much you put down depends on the concession allowed.
Under Amount Paid by or in Behalf of Borrower.
Yes, but the amount of the concession depends on the type of short sale. An FHA Short Sale (under the HUD Pre-foreclosure Sale Program) can include up to a 1% seller concession only if the Buyer is utilizing FHA financing in the purchase. A HAFA Short Sale will allow a seller concession, but the amount depends on the proposed net proceeds to the mortgage servicer.
A seller's concession is something the seller gives or gives up in order to make the sale. Therefore the seller's profit is reduced. However, seller's concessions are often used as a selling tool in a buyer's market. Many first time buyers need some seller's concessions in order to purchase the property. It depends on how much you want to sell. If you can afford to hold on to the property and do not need a sale at present, you can wait until the seller's market improves.
No!
Yes, a seller's concession stand is taxable income. Depending on the state that tax rate would vary. Charities are refunded tax payments if filed under 'Unrelated Business Taxable Income '. This is only if all workers are volunteers.
At the closing table when all funds from the sale/purchase of the home are exchanged.
Seller-paid concessions, when used properly, can mean the difference between closing a home sale and losing one. A concession is anything of value added to the transaction by the seller, builder, developer, salesperson or any interested party. A concession may also include any closing costs that would normally be paid by the buyer or cash given to the buyer to lower non-housing debts. Funds received from a relative to assist with a home purchase, or cash contributed from an employer as part of a corporate transfer are not considered seller concessions.
Seller's Concessions or seller contributions are the amount or percentage of closing costs that the seller agrees to pay from his or her proceeds. This amount should already be included in the contract. If you need any further help with this feel free to call my office (214)607-1445.
You would have to come up with 10% of the cost of the house. The seller is willing to give 6% back to you for closing cost.
There are many new and used concession stand equipment items on eBay to choose from. Be sure to check the seller's feedback score before bidding for a hassle free experience.