Fannie Mae Offers New Incentives…
Fannie Mae, as a private company (although a recipient of government supports), is simply acting, as all sellers in this market must and do, to attract sellers. The fact of the matter is that there is absolutely nothing out of the ordinary about a seller paying up to 3.5% in closing costs for a purchaser in today’s market. As a matter of fact, I don’t think I’ve done more than three deals this year in the re-sales market that didn’t include sellers’ assistance for the purchasers’ closing costs and pre-paid items in an amount around the 2.5 – 3.5% arena. At the time of writing this, I have been unable to determine if Fannie will automatically include pre-paid items… but I know that we have negotiated them in the past.
Here’s the Real Story: Fannie is offering incentives to selling agents (those agents who bring a buyer to the table)… A $1500 bounty! They are trying to get agents to show their homes… to sell their homes over the competing properties. This too is not an unusual thing in today’s market.
In a market where so many agents are struggling for survival, this incentive can be a powerful inducement to hungry agents to steer buyers toward Fannie Mae properties. So my advice is don’t buy a home without representation… but interview your agent well… be sure that he/she is working for you! If you are working with an agent under a Buyer’s Agreement that agent is required by law to put your interest above the interest of all other parties, including their own!
May the Market be with you.
* Armed Services Veterans returning from Afghanistan and Iraq have until April 30, 2011 to exercise the tax credit that expired for all others on April 30, 2010.
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