The Ins and Outs of Seller Concessions
By Realty411 Team
Home sellers need to be more willing to make concessions in a challenged real estate market, per Yahoo! Finance.
Lower asking prices are not enough anymore, so sellers should be more willing to negotiate deals. Helping with closing costs and giving an interest rate buydown concession (where the seller gives the buyer a credit, essentially lowering their monthly payments) are just two examples.
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Repairing the property, allowing a closing period of 45 days, and offering a home warranty can also sweeten the deal for buyers.
However, sellers should avoid certain types of concessions. For example, making home improvements (which are different from repairs) or giving things like a “carpet and painting” allowance.
While the days of simply posting a “For Sale” sign are over and creativity is more important than ever, sellers still need to protect themselves.
Some concessions are particularly risky, such as allowing the buyer to move in before closing or allowing the deal to be contingent on when the buyer sells their current home.
Flexibility is important, but so is avoiding gullibility.
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