Rural Housing Requirements For USDA Loans In Kentucky

Why Would a Seller Agree to a Seller Credit?

Seller Benefits:
~ Seller credits help a home sell faster in buyer markets.
Price Reductions are costlier to a seller than credits.

~ Innovative “Good Will” to support a new homeowner adjusting to homeownership.
When the housing market turns into a buyer’s market, selling a home can be quite competitive.

The seller is no longer expecting to receive 100% or more of their asking price and instead expects to take less than their asking price to sell their property.

Therefore, they may offer a credit to attract more people to buy their home. After all, the seller is only concerned about selling their home at a reasonable price and selling it as quickly as possible. Seller credits and concessions are a very popular tactic to give the perception that buying their home is better. Seller credits work because many first-time buyers struggle to come up with the down payment and closing costs, and seller credits ease that burden.

Buyer Benefits:
~ Allows the buyer to ease into homeownership by paying below fixed-rate payments.
~ Does not increase the loan amount. The loan amount amortizes as a standard fixed-rate loan.
~ Safe way to take advantage of a lower payment in a rising rate environment.

A Seller Credit Can:
= Offset closing costs
= Permanentlv Reduce an interest rate
= Temporarily Reduce an interest rate

In all three scenarios, this helps your buyers. Each buyer has different needs, so it is up to you to help them In all three scenarios, this helps your buyers.

Each buyer has different needs, so it is up to you to help them figure out how to best apply a seller credit.

Share this: