SELLER’S CONCESSIONS…

WHAT ARE THEY?

Seller’s concessions are a great bonus feature for both buyers and sellers in the current market. They can make a difference between closing on a home or losing it. There are a few ways a seller’s concession can be utilized in a sales contract. So what are they?

A seller’s concession can be applied towards closing costs and prepaids which will assist the buyer in bringing little or no money to closing. The monies can be used in a number of ways: to buy down your interest rate (which will lower your monthly payment), to pay down other fees like homeowner’s insurance premium and HOA dues, etc. According to Broker Outpost LLC, the allowable amount is typically between 3-9% of the purchase price. Your experienced CENTURY 21 At The Shore Realtor will put this in your sales contract. Make sure no concession is left behind! If you don’t use it, you will lose it and, as per Broker Outpost LLC, the remaining balance will be credited back to the seller. This type of concession Broker Outpost explains will also help the sellers get their home sold which will allow them to close on the next home sooner.

A seller’s concession can also be used in a sales contract another way. For example…if the offer price on the home is $125,000 and the buyer wants to receive $5,000 towards closing costs and prepaids, the offer price will be changed to $130,000 with $5,000 at closing. This is a win win situation. You will be getting the money needed for closing costs and the seller will be getting exactly the price they need. Ask your experienced CENTURY 21 At The Shore Realtor to incorporate a seller’s concession in your sales contract.

Source: Broker Outpost LLC, 2007

I grew up in Monmouth County and moved to Bayville seven years ago. I am a graduate of Ocean Township High School and attended a vocational school where I learned auto mechanics. I met my husband five years ago and we have been married for almost two years. My first career was in the mortgage business where I started as a copier and worked my way up to a loan specialist. I have been in the mortgage industry for ten years. Recently I joined CENTURY 21 At The Shore Realty and although real estate is a new career I plan to take my knowledge as a loan specialist and help buyers and sellers navigate the myriad of paperwork and red tape involved today in a mortgage approval. More...