Credit Backs

General Real Estate Investing
1

Hi,

I would like to make offers for above the agreed upon sales price, in order to get a credit back for closing costs and repairs. Has anyone run into issue and reluctance from sellers to do this?

Thanks,
Lavone

2

Just put it in your purchase agreement that you would like $2,000 for flooring allowance or what ever amount. I have not used it but it should mean that you bring less to clossing.

NDI

3

Please elaborate on bringing less $ in for closing using credit back.

4

We just closed on a house yesterday and we were the sellers. The house sold for about $100,000 and in the Purchase Agreement the buyer wanted us to pay $3,000 in closing costs (or Flooring Allowance). They buyer was required to have 3% down with a VA loan. So when we paid the $3K at closing the buyer actually got a check back for $500 on his earnest money downpayment. This buyer got into the house for ZERO DOWN and this happens every day.

I hope this example make sense.

Good luck and go buy your primary residence.!
NDI

5

I’ve had sellers do this for my clients and they usually don’t have a problem with it. They look at what there “net” will be and don’t have any problem increasing the sales price to help the buyer with closing costs.