Full Seller's Assist

2 Replies

I have a flip that is listed for sale at $349K. The seller's REA has approached us with a buyer who insists on full seller's assist (read: they want to bring no cash to the deal). They're so adamant on this that they're willing to offer more than asking price in order to not bring cash to the deal. I don't know what to think of this offer. My gut instinct is that if they can't bring cash to the deal how are they going to get pre-approval on a $350K+ mortgage. 

Has anyone ever experienced something like this before? Do I have any other "creative financing options" (like owner financing)? I don't want to just increase the asking price because then transfer tax, commission, etc increases with it. Should I just tell them NO & move on??

Thanks everyone!


(I'm a little lost with the players here.  I'm assuming that, as sales price goes up, you'll make incrementally more money.)

No, set a price where your gut is happy.  How about $385k where the bank loan is $315k and you (the seller) carry the 2nd mortgage of $77k.  Your 2nd mortgage is 5%, fully amortized (30yr) with a 5 year balloon (or whatever).

If everything goes well then great.  If not, you'll have the hassle of foreclosure.  Foreclosure isn't guaranteed, just a risk.  What's it worth to you to accept that risk, $35k+?  If you're willing then send that back as your counter-offer.  Feel free to hike-up that number; "you'll miss 100% of the shots you never take."

I am assuming you meant to say " the Buyers REA" and by no cash, you meant seller covering closing costs, but they're still making some down payment. Closing costs, for the buyer, paid for by the seller, is limited to 3% for conventional, owner occupant, and 6% in some cases, for FHA. I wouldn't tie it up without a preapproval from My lender contact, and the property may not appraise for the higher number.

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