SELLER CONCESSIONS

WHAT ARE SELLER CONCESSIONS? HOW OFTEN DO WE SEE THEM AND SHOULD A SELLER BE CONCERNED?

SELLER CONCESSIONS ARE ACTUALLY A WAY FOR A BUYER TO FINANCE PART OF THEIR CLOSING COSTS. THEY MAY HAVE SOME OF THEIR DOWN PAYMENT BUT MAY WANT OR NEED ADDITIONAL FUNDS TOWARD TAXES OR TITLE OR ATTORNEY FEES FOR EXAMPLE. SOME BUYERS ACTUALLY HAVE ENOUGH MONEY BUT PREFER TO SAVE IT TO MAKE IMPROVEMENTS TO THE HOUSE SO, THEY SEEK SELLER CONCESSIONS.

I ALWAYS ADVISE MY SELLER CLIENTS THAT THEIR BIGGEST CONCERNS SHOULD BE WHAT THEY ACTUALLY NET AND IF THE HOUSE WILL APPRAISE. IF BOTH OF THESE ISSUES LOOK POSITIVE FOR THE SELLER, THERE SHOULD BE NO ISSUE WITH SELLER CONCESSIONS. OFTEN IT IS THE WAY A TRANSACTION WILL GO TOGETHER...IT GETS THE HOME SOLD. MORE OFTEN WE ARE SEEING BUYERS ASKING FOR SELLER CONCESSIONS IN THEIR INITIAL OFFER. SUCH A REQUEST CAN BE A NEGOTIABLE ITEM. IF A BUYER WANTS $80000 BUT THE SELLER FEELS THE NET WILL BE TOO LOW, THE SELLER CAN COUNTER WITH $5000 IN CONCESSIONS. UNLESS THE BUYER ACTUALLY NEEDS THAT EXACT AMOUNT AND CANNOT SECURE IT FROM ANOTHER PLACE LIKE THEIR SAVINGS OR A GIFT LETTER FROM A FAMILLY MEMBER, MORE OFTEN THAN NOT, THE COUNTER OFFER IS ACCEPTED.

CONTRACTS CAN BE COMPLICATED AND TRYING TO SELL A HOME ON YOUR OWN WITHOUT ANY EXPERIENCE CAN BE COSTLY, TIME CONSUMING AND RISKY. MY SUGGESTION IS TO ALWAYS USE A FULL-TIME PROFESSIONAL AGENT TO REPRESENT YOU IN THE PROCESS.

Dede Olds

Dede Olds

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