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  • The Excel link seems to be broken.

  • what does subsidy mean?

    • What I’ve understood this to be if you are referring to a “seller subsidy,” which is often noted in Real Estate transactions, it means that the buyers (during contract negotation) asked for the seller to agree to a discount (refund) from the cost of the transaction without lowering the sales price. In the real world, an example would be: Property contract price 360K with seller subsidy of 10K. The net cost for the property would be 350K for the buyer. I think it’s often done so that they buyer doesn’t have to come to the closing table with as much cash to cover the closing costs, which can be a lot. After a downpayment, closing cost, there can be little or nothing left to furnish the property, for example, so by being granted a subsidy, the buyer doesn’t have to pay as much in closing costs and might be able to use some of that “subsidy” to furnish the new place.

      • You are correct. Seller subsidy is essentially money the seller puts forth to help cover the buyer’s closing costs (e.g., transfer taxes, title insurance, etc.). It means the buyer needs to come up with less cash at closing, and is a negotiating point when buying a house. So yeah, everything DCer said.

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