HomeGrants & NeighborhoodGold - Posted by Galina

Posted by Ken (in Iowa) on July 31, 2003 at 19:22:49:

In most cases, (and in every case in which I have been the seller when these programs have been used) the price of the home is increased by the amount of the down payment to offset the “service fee” that the seller must pay. Of course, the home must appraise for the higher amount or the deal would need to be restructured in some way. The advantage to the seller is that it opens the market for his home to a whole new set of buyers - those without the funds for a down payment!

In your case, assuming that you are the buyer, you can make your offer at or close to the seller’s asking price (assuming that makes sense to you - you have to be the judge of that) and ask the seller to include the cost of the service fee. In a lot of cases, the seller would accept the net price you are offering anyway. If not, you can always add the cost to his or her asking price if you want the house enough.

Hope this helps - good luck,
Ken (in Iowa)

HomeGrants & NeighborhoodGold - Posted by Galina

Posted by Galina on July 31, 2003 at 17:46:41:

Please forgive me my ignorance, I’m newbie and still learning about all tricks? So, speaking about the programs that HomeGrants and NeighborhoodGold are providing? It looks to me that the seller basically is paying the buyer?s downpayment? Am I wrong? The buyer receives the gift/grant that equal to downpayment and then the sellers pays seller?s service fee equal to this gift/grant. What is the benefit for seller? Fast selling? Only? But the seller is getting price 5-10-15% less that he wanted. Do you think it is possible to convince seller to do it? How?
Thanks for listening and possible explanation?