What is it?
Seller assist, sometimes called seller concessions, is the amount of money the seller gives toward's the buyer's closing costs.
How Much Assist Can I Get?
The maximum amount of seller assist you can get depends primarily on three things: the purchase price and the type of mortgage you are getting. Conventional loans cap assists at 3% of the purchase price, while FHA and USDA loans let you get up to 6%. Getting a seller assist on a $200,000 house with an FHA mortgage could save you $12,000!
Free Money? What's the Catch?
Technically yes, it is free money, but there is a downside to asking for a seller assist, namely that it makes your offer less competitive. If a seller gets 5 offers, all at asking price, and yours is the only one asking for seller assist, guess which is the first one to be discarded? In the current extremely competitive seller's market, it is best to only ask for a seller assist if you need one. Once the market switches back to a buyer's market, you will most likely be competing against fewer offers, so you'll have more leverage to try and get a good deal.
Above Asking
One way to keep your offer competitive while still asking for a seller assist is to offer over the listing price. If you know you'll need a full 6% assist on a $200,000 house, you could offer $210,000. 6% on $200,000 would net the seller $188,000, but 6% on $210,000 would net the seller $197,400. Don't go crazy, though - the house still has to appraise for the mortgage amount. Going too high over asking may make the seller uneasy because they worry the house won't appraise that high. To avoid obstacles down the road, they may nix your offer. If you go the over-asking route, just make sure to keep the purchase price reasonable!