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What Are Seller Concessions?
Seller concessions are one of the most common tools in a real estate transaction and one of the least understood. Here is a clear explanation of what they are and how they affect both the buyer and the seller.
Video coming soon
The key takeaways are below in the meantime.
Written by Bri Bond-Erwin
Key Takeaways
- Seller concessions are a negotiated contract term in which the seller agrees to contribute a set dollar amount toward the buyer's closing costs
- Concessions reduce what the buyer personally brings to closing, and they also reduce what the seller receives as net proceeds
- Concessions are written into the offer and must be agreed upon by both parties. They are not automatic or assumed
- The amount the seller can contribute is limited by the loan type and lender guidelines
- Buyers often use concessions when they have enough for a down payment but want to reduce how much cash they need for closing costs
- Seller concessions are a legitimate tool in most transactions. Your agent can help you understand when and how to use them effectively
Transcript will be available when the video is recorded.
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