Concessions on Seller Concessions

by Joan Rogliano, www.roglianorealestategroup.com. TSD Contributor

Has your year gotten off to a good start? 2012 appears to be more encouraging on the home front! If you recall, last year FHA, in all its wisdom, announced intentions to drastically reduce the maximum seller concessions from 6% to 3%. Not good news for buyers, sellers or the industry in general. So many transactions rely on FHA and seller contributions, and couldn’t happen without them. Well the troops mobilized with voices from lenders, Realtors, builders and consumers and HUD wants you to know they’re listening. The details haven’t been finalized, but word is out that there will be higher seller concessions allowed than originally proposed. They’re talking between 4 and 5% rather than 3%. Stay tuned for the formal announcement intended to offer a good compromise for continued recovery of our fragile economy, and protection for the FHA insurance fund. More good news yesterday from the Federal Reserve. They plan on expanding the time frame to keep the prime rate very low, through at least the end of 2014! Share this news with your clients and sphere, so you become their trusted resource for real estate insights!