Seller Concessions Exceeded

[Zaheer Khan]

Hi BP community!

First time investor here.

I’m getting ready to close on an investment property (condo) next week. My lender just informed me that my seller concessions exceed the relevant closing costs (including points buydown) and that the money left over will be a “wash”. Neither the buyer nor the seller would have access to it. My realtor is reaching out to the listing agent but told me the seller may have restrictions (unclear what the restrictions are) on changing the contract now since they are doing a 1031 exchange.

My question is – if the seller does not reduce the sale/purchase price and I max out on seller concessions, what options do I have to avoid this “wash”?

[Russell Brazil]

How much is the difference?

When I've had this happen, we've just found ways to spend the money. Prepay HOA fees, buy a home warranty, prepay some other kind of service that can go on the alta.