First off, What are seller concessions…?
Seller Concessions is the request for the seller to pay for your loan costs, impounds, title/escrow costs, recording fees, etc:… Basically these concessions is agreeing to pay for or help pay for your closings costs.
You might be thinking… why would someone agree to give me thousands of dollars.
Mostly Buyer’s ask for this assistance from the Seller because it’s either a conditional requirement from the lender or because they are trying to save more money out of pocket. Remember, that as the buyer you need enough money to for your down payment and these closing costs. Not everyone might have enough cash for 100% of both when buying a house.
Getting free money is awesome right? But, how does this effect the position of your offer?
Now asking for the seller to pay your closing costs does affect your offer and it effects the seller’s net profit. These concessions come from the Seller’s Proceeds of the sale of the house. Which can cause the seller to be less inclined to accept your offer, I recommend on talking with a Realtor to discuss different strategies and what is the best opinion for you.
Modifying specific terms on your offer can increase the likelihood of the seller agreeing to help or pay for your closing costs. Form adjusting your purchase price, agreeing up front on repairs, targeting specific homes to buy, or reviewing creative options with your lender.
Depending on your situation, the property, your strategy, and your local market all weigh heavy on the seller’s decision. But, at the end of the day Seller Concessions reduce how much money the seller makes on the sale. Make sure you review ALL of your options with your Realtor before writing your offer.Remember First Impressions Count!