Sweeten the Deal: A Home Seller's Guide to Concessions
Selling your home in today's market? Want to make your listing stand out from the crowd? Consider offering concessions to attract buyers and close the deal faster. But what exactly are seller concessions, and how can they benefit you? Let's dive in:
What are Seller Concessions?
Essentially, a concession is when you, the seller, agree to cover some of the buyer's expenses associated with purchasing your home. Think of it as a little extra incentive to seal the deal.
Why Offer Concessions?
- Boost Appeal: Concessions can make your property more enticing in a competitive market.
- Faster Sale: They can motivate buyers to make an offer quickly.
- Help Buyers: Concessions reduce upfront costs, making homeownership more attainable, especially for those with limited cash.
Types of Concessions:
You have a range of options when it comes to concessions, including:
- Closing Costs: Title search, loan origination fees, etc.
- Inspections: Covering the cost of a home inspection.
- HOA Fees: Paying a portion of the buyer's HOA fees.
- Property Taxes: Assisting with property taxes.
- Repairs & Updates: Offering credit towards necessary repairs or updates.
- Professional Fees: Contributing towards appraisal or real estate agent fees.
How Concessions Work:
You can advertise concessions upfront or negotiate them during the purchase process. They are typically included in the purchase agreement as a specific dollar amount.
Concession vs. Compensation:
While concessions cover a broad range of buyer expenses, "compensation" usually refers specifically to payments made to the buyer's agent for bringing a successful buyer.
Spreading the Word:
You can advertise concessions publicly, on the Multiple Listing Service (MLS), or discuss them during negotiations. However, be aware that MLS rules regarding concessions vary. Some may not allow advertising them, while others may have specific requirements.
Are There Limits?
Yes, the total value of concessions you can offer is subject to the buyer's lender requirements and state laws. It's crucial to be aware of these limitations.
Need Guidance?
Working with a MOVE Real Estate Professional ensures you have a trusted advisor by your side. They can help you navigate the complexities of concessions, answer your questions, and develop a winning strategy that aligns with your goals. We are bound by a Code of Ethics to protect and promote our client's best interests.
Ready to sell your home? Contact a MOVE Real Estate agent today!
