What Are Seller Concessions?

In a real estate transaction there are many things that can be negotiable beyond just the sales price. One of the most common things that will be negotiated are seller concessions. Concessions are when the seller agrees to pay for something beyond the scope of what they are legally required to. It is a way for sellers to “sweeten the pot” and be attractive for buyers or prevent them from backing out of a contract.

Seller concessions can take many different forms, but some of the most common ones are home repairs recommended by the buyer’s home inspection, paying the buyer’s closing costs, covering the appraisal, etc. These concessions can be introduced at the beginning of a transaction or they can be negotiated at any point along the way. They are a great way to increase flexibility over the course of the transaction to help adapt to any situations that may arise. 

An example of a seller concession would be if a buyer goes under contract on a home, then during their inspection period they discover that the roof will need to be replaced soon. The buyer may be concerned about having to put more money into the home as soon as they close on the deal, so the seller can offer a seller concession to help pay for part of or all of the cost of a new roof. It is a win-win for both parties as the buyer no longer has to worry about the roof and the seller still gets to close on the sale of their home. 

In order to get the most favorable deal in a real estate transaction it is important to work with an experienced real estate professional who can negotiate on your behalf. Our team is very experienced in arranging seller concessions and will work to make sure that you can get the best deal possible on the purchase or sale of your home. Give us a call today if you are looking to utilize concessions in your next real estate transaction!

If you are looking to learn more about seller concessions, take a look at this in-depth article from realtor.com.